SINGAPORE--Singapore's central bank Wednesday raised the floor on its earlier forecast range for consumer inflation and maintained that its current monetary policy stance was appropriate to contain stubborn price pressures in the local economy.
The exchange-rate mechanism "is taking longer than usual to moderate inflation, but it remains our broadest and most effective anti-inflation tool," Ravi Menon, managing director of the Monetary Authority of Singapore, said at a news briefing. "Our simulations show that if this appreciation [of the local dollar] had not taken place, [consumer price index inflation] this year would have been 6.5%-7.0%, rather than the 4.0%-4.5% we have projected." Full story
