What's next in 2022

Keep an eye on interest rates and inflation

Households reminded to not over-extend themselves on debt front while investors should be on the alert for rate hikes and inflationary pressures.

ST ILLUSTRATION: MANNY FRANCISCO
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With robust growth of 7.2 per cent for 2021 under its belt and a population that is largely vaccinated, the Singapore economy is well on track for a smooth transition to a world where Covid-19 is endemic. However, there could be speed bumps for investors and households in the form of rising interest rates and inflationary pressures.

As economies around the world emerge from the shadow of Covid-19, there will be a rollback of previously expansionary monetary policies. In particular, in the United States, with the spectre of inflation running at the fastest in three decades, the Federal Reserve could raise rates as early as March, with more than one hike this year.

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