News analysis

Singapore's monetary policy decision in October will hinge on growth and employment risks

Analysts believe an excessively strong Singdollar will put the nation's export competitiveness at risk. ST PHOTO: LIM YAOHUI
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SINGAPORE - High inflation may give Singapore's central bank no choice but to keep pushing up the currency against the country's trading partners, but just how aggressive it will be is the key question for markets.

The risks of going too hard are clear given that there are increasing signs of a global downturn and the possibility of two consecutive quarters of negative growth here, which would imply the economy is in a technical recession.

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