There are growing signs that Singapore’s economy is overheating, with inflation now nearly double the target and wages increasing rapidly. However, we do not expect the MAS to respond by tightening monetary policy further. We expect growth to slow in the second half of the year, which should help to cool underlying price pressures, while a reopening of the international border should help to ease labour shortages.
Asia Drop-In (30th June, 09:00 BST/16:00 SGT): Are Asia’s central banks behind the curve? Can the Bank of Japan and People’s Bank of China continue to go against the grain? Find out in our special session on what global monetary tightening looks like in Asia. Register now.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services