The Monetary Authority of Singapore may once again slightly tighten monetary policy to curb the risk of inflation brought about by high oil prices and the boom in artificial intelligence. Of the 20 economists surveyed by the media, 17 expected the HKMA to raise the slope of the Singapore dollar exchange rate range during the quarterly meeting on Wednesday, while the other 3 predicted no change. The Monetary Authority of Singapore mainly uses exchange rates rather than interest rates as a policy tool, and has been steadily tightening policies since this year. The bank raised the slope of the Singapore dollar exchange rate range in April to allow the exchange rate to appreciate faster, and raised it “slightly” again in July. Many analysts interpret the latter action as an adjustment of 25 basis points, which is half of the normal adjustment.

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