In today’s Straits Times, analysts expect tighter monetary policy despite concerns about slowing growth. I agree with this view and RHB bank views. Singapore is an open economy and is likely to experience imported inflation from abroad that contributes downside risk to Singapore’s 3.0% GDP forecast.

Meanwhile, Jerome Powell is likely to hold off on cutting interest rates unless there is a noticeable rise in unemployment. The Federal Reserve remains focused on balancing its dual objectives of supporting employment while keeping inflation under control. Employment is his top priority.