Singapore’s central bank warns further supply chain strain could cause more price shock

• Jul 19, 2022

From the Monetary Authority of Singapore, the country’s central bank:

• Global inflation seen easing in 2023 as major c.banks withdraw policy accommodation and supply challenges addressed
• However, global inflation outlook is subject to considerable uncertainty
• Additional strains on supply chains could cause further price shocks
• Singapore economic growth is expected to moderate further in 2023, in line with slowdown in its major trading partners
• As of now, we expect neither a recession nor a stagflation in Singapore next year”
• Effects of its four monetary policy tightening moves are still working their way through the economy and will continue to dampen inflation over the next 12 mths
• to prevent further build-up in labour cost pressures, it is important that the inflow of non-resident workers continues unimpeded
• closely monitoring any systemic risk to financial system arising from debt related stresses in corporate and household sectors
• c.bank supervisors have stepped up engagement with banks on their asset quality, including adequacy of provisioning against possible asset quality deterioration
• stress tests on balance sheets of SGX-listed firms show that most corporates would be resilient to interest rate and earnings shocks
• stress tests by mas suggest most households should be able to service their debts even under scenarios of sharp interest rate hikes and significant income losses

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Source: https://www.forexlive.com/centralbank/singapores-central-bank-warns-further-supply-chain-strain-could-cause-more-price-shock-20220719/