The first half of 2023 will be tough globally and in Singapore, according to Monetary Authority of Singapore managing director Ravi Menon. He said that the global economy is facing an unusual combination of high inflation and slowing growth. He warned that the situation is likely to get worse before it gets better. Menon explained that the risk of stagflation cannot be discounted, with stubbornly high inflation and economic growth close to zero. But tighter financial conditions and slowing growth should start easing inflationary pressures going into the second half. Central banks must continue to stay resolute in tackling high inflation and restoring price stability. MAS started tightening monetary policy early, in October last year, when core inflation was still below 2%.
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