Global Market: Singapore Central Bank surprises markets with policy tightening amid inflation risks

Singapore's central bank MAS unexpectedly tightened monetary policy by steepening the slope of its currency-based policy band, with 12 of 16 analysts polled having expected no change. Core inflation is projected to remain elevated through mid-2027, with the central bank flagging energy price risks, supply disruptions from the Middle East, and stronger global investment activity as upside risks to prices. Singapore's economy grew 5.7 percent year-on-year in the second quarter, supported by robust artificial intelligence-related investment, while core inflation stood at 1.6 percent in June.