Singapore’s central bank tightened monetary policy on Thursday (July 14), claiming that this move would decrease inflation as the city-state joins other countries in attempting to combat rising price pressures. Following this news, the Singapore dollar increased significantly and was last up about 0.7 per cent to S$1.33963 per dollar, with economists anticipating more tightening in October. The Monetary Authority of Singapore (MAS) tightened the monetary policy for the fourth time in the previous nine months, Reuters reported.

The central bank also stated that the core inflation rate is now estimated between 3.0 - 4.0 per cent this year, a little up from an earlier forecast of 2.5 and 3.5 per cent. Singapore’s GDP is not expected to come in at the lower half of the 3-5 per cent forecast range for this year. The country’s GDP increased by 4.8 per cent in the second quarter, below expectations, as per the preliminary data released.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/major-economies-to-enter-recession-in-the-next-12-months-report-495159">Major economies to enter recession in the next 12 months: Report</a>

The central bank tightened monetary policy in April to combat the rising prices caused worse by the conflict in Ukraine and supply disruptions around the world. The bank schedules two meetings, one in April and the other in October, every year to discuss the monetary policy.&nbsp;

Watch |&nbsp;Singapore’s economy grew 4.8% in the second quarter, missing forecasts

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Since April, the city-state has loosened most of its Covid-19 local and travel restrictions in an effort to ais the financial and commercial hub for the economic revival.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/eurozone-inflation-hits-record-as-gas-crunch-looms-493665">Eurozone inflation hits record, as gas crunch looms</a>

As the trade flows through its economy, the MAS controls the monetary policy through exchange rate settings rather than interest rates. In addition, there are three levers used to change the policy: the slope, mid-point, and width of the policy band. These three variables allow the Singapore dollar to rise or fall against the currencies of its primary trading partners.&nbsp;

(With inputs from agencies)

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Singapore’s central bank tightened monetary policy on Thursday (July 14), claiming that this move would decrease inflation as the city-state joins other countries in attempting to combat rising price pressures.

Singapore’s central bank tightened monetary policy on Thursday (July 14), claiming that this move would decrease inflation as the city-state joins other countries in attempting to combat rising price pressures. Following this news, the Singapore dollar increased significantly and was last up about 0.7 per cent to S$1.33963 per dollar, with economists anticipating more tightening in October. The Monetary Authority of Singapore (MAS) tightened the monetary policy for the fourth time in the previous nine months, Reuters reported. The central bank also stated that the core inflation rate is now estimated between 3.0 - 4.0 per cent this year, a little up from an earlier forecast of 2.5 and 3.5 per cent. Singapore’s GDP is not expected to come in at the lower half of the 3-5 per cent forecast range for this year. The country’s GDP increased by 4.8 per cent in the second quarter, below expectations, as per the preliminary data released. Also read | Major economies to enter recession in the next 12 months: Report The central bank tightened monetary policy in April to combat the rising prices caused worse by the conflict in Ukraine and supply disruptions around the world. The bank schedules two meetings, one in April and the other in October, every year to discuss the monetary policy. Watch | Singapore’s economy grew 4.8% in the second quarter, missing forecasts Since April, the city-state has loosened most of its Covid-19 local and travel restrictions in an effort to ais the financial and commercial hub for the economic revival. Also read | Eurozone inflation hits record, as gas crunch looms As the trade flows through its economy, the MAS controls the monetary policy through exchange rate settings rather than interest rates. In addition, there are three levers used to change the policy: the slope, mid-point, and width of the policy band. These three variables allow the Singapore dollar to rise or fall against the currencies of its primary trading partners. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Singapore’s central bank tightens monetary policy to decrease inflation

<a href="https://www.wionews.com/world/singapore-to-raise-retirement-age-to-65-years-prime-minister-243941">Singapore</a>'s core inflation eased to its slowest pace in more than three years in July, data showed on Friday, prompting authorities to downgrade their full-year forecast amid firming bets for monetary policy easing.

The core inflation gauge rose 0.8 per cent from a year earlier, the slowest rate since April 2016, weighed down by declines in utilities and retail prices.

That was lower than a 1.0 per cent forecast in a Reuters poll and a 1.2 per cent&nbsp;increase in the previous month.

Authorities said they expected core inflation - the preferred price gauge of the central bank which is due to meet in October - to be in the lower half of their 1 per cent-2 per cent&nbsp;forecast for 2019, having previously said it would come in the middle.

The 1 per cent-2 per cent&nbsp;forecast range remains in place.

"This is further evidence of the weakened condition of the economy," said Steve Cochrane, chief APAC economist at Moody's Analytics.

"This will likely raise expectations of monetary policy easing... Particularly as many central banks in the region have already begun to ease monetary policy."

The Monetary Authority of Singapore (MAS) said last week, after the city-state slashed its full-year growth forecast, that it was not considering an out-of-cycle policy move.

The Singapore dollar weakened after the data release and was down around 0.2 per cent&nbsp;against the US dollar on the day.

The headline consumer price index in July rose 0.4 per cent&nbsp;year-on-year, matching January's figures, the lowest so far in 2019. The poll had called for a 0.55 per cent&nbsp;rise, compared with a 0.6 per cent&nbsp;increase a month earlier.

Singapore's headline rate is expected to average 0.5 per cent-1.5 per cent&nbsp;for the full year, MAS and Singapore's trade ministry said in a joint statement on Friday.

"An acceleration in inflationary pressures is unlikely against the backdrop of slower GDP growth, uncertainties in the global economy, as well as the continuing restraining effects of MAS' monetary policy tightening in 2018," the authorities said.

Singapore's core inflation eased to its slowest pace in more than three years in July, data showed on Friday, prompting authorities to downgrade their full-year forecast amid firming bets for monetary policy easing.

Singapore's core inflation eased to its slowest pace in more than three years in July, data showed on Friday, prompting authorities to downgrade their full-year forecast amid firming bets for monetary policy easing. The core inflation gauge rose 0.8 per cent from a year earlier, the slowest rate since April 2016, weighed down by declines in utilities and retail prices. That was lower than a 1.0 per cent forecast in a Reuters poll and a 1.2 per cent increase in the previous month. Authorities said they expected core inflation - the preferred price gauge of the central bank which is due to meet in October - to be in the lower half of their 1 per cent-2 per cent forecast for 2019, having previously said it would come in the middle. The 1 per cent-2 per cent forecast range remains in place. "This is further evidence of the weakened condition of the economy," said Steve Cochrane, chief APAC economist at Moody's Analytics. "This will likely raise expectations of monetary policy easing... Particularly as many central banks in the region have already begun to ease monetary policy." The Monetary Authority of Singapore (MAS) said last week, after the city-state slashed its full-year growth forecast, that it was not considering an out-of-cycle policy move. The Singapore dollar weakened after the data release and was down around 0.2 per cent against the US dollar on the day. The headline consumer price index in July rose 0.4 per cent year-on-year, matching January's figures, the lowest so far in 2019. The poll had called for a 0.55 per cent rise, compared with a 0.6 per cent increase a month earlier. Singapore's headline rate is expected to average 0.5 per cent-1.5 per cent for the full year, MAS and Singapore's trade ministry said in a joint statement on Friday. "An acceleration in inflationary pressures is unlikely against the backdrop of slower GDP growth, uncertainties in the global economy, as well as the continuing restraining effects of MAS' monetary policy tightening in 2018," the authorities said.

Singapore cuts 2019 core inflation forecast as prices hit a 3-year low

An Indian-origin banker in Singapore has been named as the best central bank governor in Asia-Pacific for 2018, a media report said today.

Ravi Menon, managing director of Singapore&#39;s central bank Monetary Authority of Singapore (MAS), was recognised by the leading UK-based magazine &#39;The Banker&#39; for his contribution in the makeover of Singapore&#39;s financial system.

The annual recognition is by the magazine, a publication under The Financial Times Group, is based on a selection process involving a survey of bankers and economists.

&quot;The Monetary Authority of Singapore (MAS), the country&#39;s central bank, stands out for its cutting-edge regulatory approach to fintech while maintaining macroeconomic stability,&quot; the magazine said in an article.

&quot;These are the key reasons for selecting Ravi Menon, managing director of MAS, as the Central Bank Governor of the Year for Asia-Pacific,&quot; The Straits Times reported, quoting the magazine article.

The article noted that the MAS was among the first regulators to set up a dedicated fintech group that focuses on understanding technology&#39;s risks and benefits.

&quot;You can only encourage technology to the extent that you can also contain and manage its risks. A smart financial centre must be a safe financial centre as well,&quot; Menon was quoted as saying in the article. 
Singapore&#39;s Finance Minister Heng Swee Keat was also named the best banker in 2011. He was then as MAS&#39;s managing director.

Over the last three years, the central bankers of Vietnam, India and Bangladesh were named for the recognition.

Ravi Menon, managing director of Singapore's central bank Monetary Authority of Singapore (MAS), was recognised by the leading UK-based magazine 'The Banker' for his contribution in the makeover of Singapore's financial system.

An Indian-origin banker in Singapore has been named as the best central bank governor in Asia-Pacific for 2018, a media report said today. Ravi Menon, managing director of Singapore's central bank Monetary Authority of Singapore (MAS), was recognised by the leading UK-based magazine 'The Banker' for his contribution in the makeover of Singapore's financial system. The annual recognition is by the magazine, a publication under The Financial Times Group, is based on a selection process involving a survey of bankers and economists. "The Monetary Authority of Singapore (MAS), the country's central bank, stands out for its cutting-edge regulatory approach to fintech while maintaining macroeconomic stability," the magazine said in an article. "These are the key reasons for selecting Ravi Menon, managing director of MAS, as the Central Bank Governor of the Year for Asia-Pacific," The Straits Times reported, quoting the magazine article. The article noted that the MAS was among the first regulators to set up a dedicated fintech group that focuses on understanding technology's risks and benefits. "You can only encourage technology to the extent that you can also contain and manage its risks. A smart financial centre must be a safe financial centre as well," Menon was quoted as saying in the article. Singapore's Finance Minister Heng Swee Keat was also named the best banker in 2011. He was then as MAS's managing director. Over the last three years, the central bankers of Vietnam, India and Bangladesh were named for the recognition.

Indian-origin banker named the best governor of Asia Pacific

Singapore&#39;s central bank on Tuesday shut down a second Swiss bank under investigation for alleged money-laundering activities linked to Malaysian state fund 1Malaysia Development Berhad (1MDB) as it vowed strong action against potential violators.

1MDB was set up in 2009 by Malaysian Prime Minister Najib Razak for turning Kuala Lumpur into a destination for investors. It started to attract negative attention in early 2015 after it missed payments for some of the $11bn it owed to banks and bondholders.

The Monetary Authority of Singapore (MAS) said it had ordered Falcon Bank to cease operations in the city-state because of &quot;serious failures in anti-money-laundering (AML) controls and improper conduct&quot; by senior management both at the head office in Switzerland and the local branch.

&quot;Falcon Bank has demonstrated a persistent and severe lack of understanding of MAS AML requirements and expectations,&quot; it said in a statement.

&quot;Taking into account the totality of Falcon Bank&rsquo;s conduct, MAS&rsquo; assessment is that the merchant bank will be unable to comply with these requirements and expectations going forward.&quot;

The central bank said it fined Falcon Bank Sg$4.3 million (US$3.1 million) for 14 breaches of a law on&nbsp;preventing money laundering and countering the financing of terrorism.

MAS also said it received information that Falcon Bank&#39;s Singapore branch manager, Jens Sturzenegger, had been arrested on October 5 by the Commercial Affairs Department (CAD), the Singapore government&#39;s main white-collar crime investigation agency.

The bank&#39;s parent firm Falcon Private Bank said in a statement from Zurich that it welcomed the completion of investigations by Singaporean and Swiss regulators of its involvement in 1MDB. However, it said that while the withdrawal of its Singapore banking license is &quot;regrettable and disappointing, the decision will not impact the strategic development of the bank&quot;.

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It pledged an orderly winding down of its Singapore operations. Singapore, a regional financial hub, last year launched a probe into alleged illicit fund flows linked to a 1MDB.

Allegations of misappropriations of millions of dollars from 1MDB have triggered a corruption scandal in neighbouring Malaysia that has embroiled Prime Minister Najib Razak. Both Najib and 1MDB have strongly denied any wrongdoing. Switzerland and the United States are also conducting their own investigations into 1MDB.

MAS announced that it has also fined local bank DBS and Swiss lender UBS for several breaches of anti-money laundering requirements.

&nbsp;

Aggressive action

It said the &quot;control lapses observed in DBS and UBS relate to specific bank officers who failed to carry out their duties effectively&quot; and that it did not find &quot;pervasive control weaknesses&quot; in these banks.

DBS, Singapore&#39;s biggest lender, was ordered to pay Sg$1 million for 10 violations while UBS was ordered to pay Sg$1.3 million for 13 breaches. A DBS spokesman said the bank takes its anti-money laundering obligations seriously and will take action to punish those staff responsible, including senior executives.

DBS will donate profits from its lapses to a &quot;worthy cause,&quot; the spokesman said.

Singapore&#39;s regulator in May kicked out Swiss bank BSI for similar violations linked to the 1MDB probe, the first time it ordered a bank to shut in 32 years. At least three former BSI private bankers have been charged in Singapore in relation to the investigations.

In July, Singapore authorities said they had seized nearly $180 million in assets through investigations into the 1MDB scandal.

Singapore closely guards its reputation for financial integrity and has admitted that money laundering hurts its image.

The Paris-based financial watchdog Financial Action Task Force last month urged Singapore to take more aggressive action against complex cross-border money laundering. MAS chief Ravi Menon said on Tuesday that &quot;keeping Singapore a clean and trusted financial centre is a shared responsibility&quot; and urged bank senior management to play a crucial role.

&quot;They must set the tone from the top --- that profits do not come before right conduct,&quot; he said, warning that the MAS &quot;will take strong deterrent actions against institutions that fall short&quot;.

The MAS also said it is in the final stages of assessment for the Singapore branch of Standard Chartered Bank and has referred Raffles Money Change, a local financial company, for investigation by the CAD.

Falcon Private Bank is owned by the International Petroleum Investment Company from Abu Dhabi, one of the &nbsp;world&#39;s leading sovereign wealth funds. 
 
(AFP)

Singapore launched a probe last year into alleged illicit fund flows linked to the Malaysian fund 1MDB

Singapore's central bank on Tuesday shut down a second Swiss bank under investigation for alleged money-laundering activities linked to Malaysian state fund 1Malaysia Development Berhad (1MDB) as it vowed strong action against potential violators. 1MDB was set up in 2009 by Malaysian Prime Minister Najib Razak for turning Kuala Lumpur into a destination for investors. It started to attract negative attention in early 2015 after it missed payments for some of the $11bn it owed to banks and bondholders. The Monetary Authority of Singapore (MAS) said it had ordered Falcon Bank to cease operations in the city-state because of "serious failures in anti-money-laundering (AML) controls and improper conduct" by senior management both at the head office in Switzerland and the local branch. "Falcon Bank has demonstrated a persistent and severe lack of understanding of MAS AML requirements and expectations," it said in a statement. "Taking into account the totality of Falcon Bank’s conduct, MAS’ assessment is that the merchant bank will be unable to comply with these requirements and expectations going forward." The central bank said it fined Falcon Bank Sg$4.3 million (US$3.1 million) for 14 breaches of a law on preventing money laundering and countering the financing of terrorism. MAS also said it received information that Falcon Bank's Singapore branch manager, Jens Sturzenegger, had been arrested on October 5 by the Commercial Affairs Department (CAD), the Singapore government's main white-collar crime investigation agency. The bank's parent firm Falcon Private Bank said in a statement from Zurich that it welcomed the completion of investigations by Singaporean and Swiss regulators of its involvement in 1MDB. However, it said that while the withdrawal of its Singapore banking license is "regrettable and disappointing, the decision will not impact the strategic development of the bank". The central bank said it fined Falcon Bank Sg$4.3 million (US$3.1 million) for 14 breaches of a law on preventing money laundering and countering the financing of terrorism. × It pledged an orderly winding down of its Singapore operations. Singapore, a regional financial hub, last year launched a probe into alleged illicit fund flows linked to a 1MDB. Allegations of misappropriations of millions of dollars from 1MDB have triggered a corruption scandal in neighbouring Malaysia that has embroiled Prime Minister Najib Razak. Both Najib and 1MDB have strongly denied any wrongdoing. Switzerland and the United States are also conducting their own investigations into 1MDB. MAS announced that it has also fined local bank DBS and Swiss lender UBS for several breaches of anti-money laundering requirements. Aggressive action It said the "control lapses observed in DBS and UBS relate to specific bank officers who failed to carry out their duties effectively" and that it did not find "pervasive control weaknesses" in these banks. DBS, Singapore's biggest lender, was ordered to pay Sg$1 million for 10 violations while UBS was ordered to pay Sg$1.3 million for 13 breaches. A DBS spokesman said the bank takes its anti-money laundering obligations seriously and will take action to punish those staff responsible, including senior executives. DBS will donate profits from its lapses to a "worthy cause," the spokesman said. Singapore's regulator in May kicked out Swiss bank BSI for similar violations linked to the 1MDB probe, the first time it ordered a bank to shut in 32 years. At least three former BSI private bankers have been charged in Singapore in relation to the investigations. In July, Singapore authorities said they had seized nearly $180 million in assets through investigations into the 1MDB scandal. Singapore closely guards its reputation for financial integrity and has admitted that money laundering hurts its image. The Paris-based financial watchdog Financial Action Task Force last month urged Singapore to take more aggressive action against complex cross-border money laundering. MAS chief Ravi Menon said on Tuesday that "keeping Singapore a clean and trusted financial centre is a shared responsibility" and urged bank senior management to play a crucial role. "They must set the tone from the top --- that profits do not come before right conduct," he said, warning that the MAS "will take strong deterrent actions against institutions that fall short". The MAS also said it is in the final stages of assessment for the Singapore branch of Standard Chartered Bank and has referred Raffles Money Change, a local financial company, for investigation by the CAD. Falcon Private Bank is owned by the International Petroleum Investment Company from Abu Dhabi, one of the world's leading sovereign wealth funds. (AFP)

Singapore shuts down second bank for alleged link to Malaysian money laundering scam