ANZ: If inflation risks emerge, the Monetary Authority of Singapore may tighten policy again

ANZ was among the few institutions that anticipated the policy would remain unchanged at Wednesday's meeting, saying the MAS could tighten again if inflation risks materialize next year. "Although third-quarter GDP growth was stronger than expected, and the MAS believes core inflation will remain slightly elevated in the near term, the effects of two consecutive rounds of tightening in April and July are still being transmitted," said Khoon Goh, the bank's head of Asia research. "Therefore the central bank sees no need to add further tightening at this stage." "This does not mean the tightening cycle is over." "If upside inflation risks materialize next year, the MAS may tighten policy further." Note: ANZ expects the Monetary Authority of Singapore to keep policy parameters unchanged in October. Note: 17 of 20 economists surveyed by media had previously expected the Monetary Authority of Singapore to raise the slope of the policy band.