Singapore tightens monetary policy as rising oil prices rekindle inflation risk

Commercial buildings illuminated at dusk in Singapore, on Monday, Feb. 2, 2026. Photographer: SeongJoon Cho/Bloomberg via Getty ImagesBloomberg | Bloomberg | Getty ImagesSingapore on Monday tightened its monetary policy for a second consecutive time, moving preemptively against a renewed oil price surge even as inflation at home stays subdued.The Monetary Authority of Singapore said it will increase the rate of appreciation of the Singapore dollar's nominal effective exchange rate policy band "very slightly," with the adjustment smaller than April's. The width of the band and the level at which it is centered were left unchanged. Unlike most central banks, the MAS manages medium-term price stability by managing the Singapore dollar exchange rate against a trade-weighted basket of currencies within an undisclosed band, rather than setting interest rates. "In an environment of continued heightened uncertainty, this calibrated adjustment to the policy stance builds on the tightening in April," the MAS said in its statement.Singapore's core inflation, which excludes accommodation and transportation costs, ticked up to 1.6% in June from 1.4% in May, near the bottom of the MAS's 1.5%–2.5...