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Advocating for a proactive policy tightening by MAS

Published July 8, 2026 at 1:15 PM UTC

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While the Monetary Authority of Singapore (MAS) has maintained a steady core inflation rate of 1.4%, the unexpectedly strong economic growth, particularly in the manufacturing sector driven by artificial intelligence demand, presents a potential risk of demand-pull inflation. To prevent the economy from overheating and to ensure that inflation remains within target ranges, it is advisable for MAS to consider tightening monetary policy. Proactive policy adjustments can help mitigate the risks associated with rapid economic expansion and ensure that growth remains sustainable. By implementing measures to cool the economy, MAS can maintain price stability and support balanced economic development. This approach would demonstrate MAS's commitment to preemptive action in safeguarding the economy against potential inflationary pressures.