Singapore's monetary policy decision may reveal the balance of risk between inflation and growth

SINGAPORE - The Singapore dollar is set to appreciate at a relatively faster pace in coming months as the central bank adjusts monetary policy parameters next week to manage the risk of surging inflation.

This will be the third move to strengthen the local dollar's trade-weighted value by the Monetary Authority of Singapore (MAS) since October. But this time around the decision, likely to be announced on next Thursday, will also be influenced by a rapidly increasing risk to economic growth.