MONEY MASTER

Singapore has become the  first Asian economy to tighten monetary policy  in response to rising inflation pressures driven by surging global energy prices amid the Middle East conflict.  MAS Tightens Exchange Rate Policy Monetary Authority of Singapore  (MAS) announced it will  increase the slope of its exchange rate policy band , a move widely anticipated by economists. Unlike most central banks, MAS uses the  Singapore dollar exchange rate (S$NEER)  as its primary policy tool instead of interest rates. The central bank  left the band’s width and midpoint unchanged , signaling a  measured tightening approach  while maintaining flexibility. Oil Prices Driving Inflation Outlook MAS highlighted that  imported energy costs have already risen , and warned that  oil prices are likely to remain elevated  even if supply disruptions ease. Higher energy prices are expected to  feed through global supply chains , increasing a b...

Singapore equities opened higher on Tuesday, tracking gains on Wall Street, while investors turn cautious ahead of a potential  monetary policy tightening by the Monetary Authority of Singapore (MAS)  amid rising oil-driven inflation pressures. STI Opens Higher Amid Positive Market Breadth The  FTSE Straits Times Index  rose  0.48% to 5,008.28  in early trade, supported by broad-based buying. Market internals were positive, with  110 advancers versus 23 decliners , as trading activity reached  99.36 million shares worth S$67.26 million . Wall Street Rally Driven by AI and Chip Stocks Overnight, US markets advanced, led by technology stocks: Nasdaq Composite  +1.2% S&P 500  +1.0% Dow Jones Industrial Average  +0.6% Gains were fueled by  AI and semiconductor names , including  Intel  and  Nokia . Investor sentiment improved after  Donald Trump signaled that Iran may be open to negotiations , easing some ge...

Summary Singapore markets opened higher, but  rising core inflation is bringing back expectations of policy tightening by MAS , even as global markets turn cautious amid tech weakness and oil volatility. Market Snapshot FTSE Singapore Straits Time Index :  +0.46% to 4,884.57 Volume / Value:  86.49M / S$130.68M Advancers / Decliners:  118 / 32 Singapore equities edged higher , supported by local resilience despite softer global cues. Wall Street Weakens on Tech Sell-Off US markets declined overnight: Nasdaq Composite Index   -0.8% S&P 500 Index   -0.4% Dow Jones Industrial Average   -0.2% Major laggards included: Salesforce   -6.2% Oracle   -4.7% Alphabet   -3.9% Microsoft   -2.7% The decline was driven by  concerns over AI disruption and pressure on tech earnings , alongside geopolitical uncertainty. Key Point: Tech weakness is weighing on global sentiment despite easing oil fears earlier Inflation Surprise Raises MAS Tight...

Singapore’s inflation eased in February, offering temporary relief before the  Middle East conflict triggered a surge in energy prices , which is expected to reshape the near-term outlook. Headline Inflation Moderates Singapore’s  consumer price index (CPI) rose 1.2% year-on-year in February , down from  1.4% in January , in line with expectations. However, underlying price pressures showed signs of firming: Core inflation rose to 1.4% YoY , up from  1.0% previously This marked the  highest level since December 2024 The data suggests that while headline inflation cooled,  core price momentum is gradually building . Cost Pressures Emerging Across Key Sectors Price increases were driven by several essential categories: Transport (+2.7%)  — reflecting higher mobility and cost pressures Food (+1.6%)  — indicating steady consumption demand Recreation & culture (+1.9%) Meanwhile, housing and utilities remained relatively subdued at  +0.3% , hel...

Slowing inflation in Singapore  has created some room for the  Monetary Authority of Singapore (MAS)  to ease monetary policy in January, but analysts believe the central bank may delay any action until later in 2025 to better assess the impact of  US President-elect Donald Trump's policies . Key Highlights Inflation Outlook November core inflation  is expected to hold steady at  2.1% , a  three-year low , according to analysts in a Reuters poll. MAS has forecast core inflation at  around 2% for Q4 2024 , with DBS Bank predicting it to average  1.8% in 2025 . Monetary Policy Approach Singapore uses the  Singapore dollar nominal effective exchange rate (S$NEER)  to manage policy, adjusting the slope, midpoint, or width of the currency band. While some analysts expect an easing at the January review, a MAS survey showed the number of economists anticipating a reduction in the S$NEER slope dropped from  50% to one-third . Analyst ...