Bangkok, Oct 14 (EFE) .- The central bank of Singapore announced this Thursday a tightening of its monetary policy for the first time in three years to face the rise in prices while the country announced a growth in the Gross Domestic Product (GDP) 6.5% in the third quarter.
The Monetary Authority of Singapore (MAS), which acts as the central bank of the city-state, indicated that it would “slightly increase the exchange rate policy band of the Singaporean dollar from 0%, to guide a modest appreciation of the currency” with the objective to deal with inflation, estimated at 2.4% until August.
“Pressures are accumulating on internal and external costs, reflecting both the normalization of demand and the tight supply conditions,” the agency points out, underlining that it was in 2018 the last time it tightened exchange rates.
Unlike most central banks that manage monetary policy through the interest rate, the MAS uses the exchange rate as its main tool.
For its part, the Ministry of Commerce and Industry indicated, according to preliminary data, that the country’s economy continues with its recovery and grew by 6.5% in the months of July-September, compared to the same period last year.
Construction is the sector that registers the highest year-on-year growth, 57.9%, due to the restrictions implemented in 2020 against the pandemic, followed by manufacturing (7.5%) and the services sector (5.5%).
Although the recent outbreak of COVID-19 cases in the city-state and the stricter restrictions implemented since September will likely affect the economy for the rest of the year, according to analysts.
Singapore, which will reopen its borders to a dozen countries -including Spain- next Tuesday, has vaccinated 80% of the target population with the full schedule and accumulates more than 132,000 confirmed cases, including 183 deaths, since the beginning of the pandemic.
(c) EFE Agency
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