Alvin Tan on tightening monetary policy to combat inflation
Monetary policy takes time to affect inflation and the effects of five rounds of tightening carried out by the Monetary Authority of Singapore (MAS) since October 2021 are still working their way through the economy, said Minister of State for Trade and Industry and MAS board member Alvin Tan. He said it will also take time for external- and domestic-induced price pressures to ease more discernibly. The cumulative effects of MAS’ policy-tightening moves are estimated to dampen core inflation by an average of 1.5 percentage points each year over 2022 to 2023. Mr Tan said MAS will continue to deploy monetary policy as appropriate to ensure medium-term price stability, while recognising the near-term risks to economic growth from a slowing and uncertain global economy. Replying to an MP’s question in Parliament on Wednesday (Nov 9), he also outlined steps taken to rein in food and accommodation prices.
Monetary policy takes time to affect inflation and the effects of five rounds of tightening carried out by the Monetary Authority of Singapore (MAS) since October 2021 are still working their way through the economy, said Minister of State for Trade and Industry and MAS board member Alvin Tan. He said it will also take time for external- and domestic-induced price pressures to ease more discernibly. The cumulative effects of MAS’ policy-tightening moves are estimated to dampen core inflation by an average of 1.5 percentage points each year over 2022 to 2023. Mr Tan said MAS will continue to deploy monetary policy as appropriate to ensure medium-term price stability, while recognising the near-term risks to economic growth from a slowing and uncertain global economy. Replying to an MP’s question in Parliament on Wednesday (Nov 9), he also outlined steps taken to rein in food and accommodation prices.
Popular Shows
