Singapore's central bank on Friday tightened monetary policy for the second time this year, saying the city-state's economy is likely to expand steadily barring a setback to global growth from trade frictions between the United States and China.
The Monetary Authority of Singapore (MAS), which manages policy through exchange rate settings rather than interest rates, said it would slightly increase the slope of the Singapore dollar's policy band. It kept the width and mid-point of the band unchanged.
Eleven of 20 analysts in a Reuters survey predicted the MAS would tighten policy via a slight increase to the slope of the policy band.
"In 2019, trade frictions between some major economies and the uncertainty they pose could weigh more discernibly on global economic activity," it said.
The central bank expects its measure of core inflation to edge up to around 2 percent in the months ahead, but come in within its 1.5-2 percent range this year. For 2019, it expects core inflation to average 1.5–2.5 percent. (Reporting by Singapore newsroom Editing by Shri Navaratnam)
(With inputs from agencies.)