Inflation risks will lead to policy tightening, opportunities to invest in 2022: Analysts

UOB is expecting at least one more round of policy tightening this year to normalise inflation to pre-pandemic levels. ST PHOTO: KUA CHEE SIONG
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SINGAPORE - Inflation risks in the United States and Singapore are expected to persist this year, leading to likely policy tightening measures by major central banks, including the US Federal Reserve and Monetary Authority of Singapore, economists and analysts said.

While US interest rate hikes are likely within the year, some of the supply chain bottlenecks that contributed to rising inflation last year are expected to dissipate in 2022, Bank of Singapore's head of investment strategy Eli Lee said during a conference on Tuesday (Jan 11).

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