According to Singapore central bank chief Ravi Menon, the global economy is facing four risks. The four risks will make the decision and policy maker focus on rescuing the economy, and not growing it.
The four global economic risks mentioned by Ravi Menon are the climate crisis, geopolitical tensions, inflation, and economic recession. Ravi Menon attended the event, “Super Return Asia”. He was asked about how long the recession will persist. He answered that if the inflation rate continues to rise, then the central bank of different countries will have to introduce a stricter monetary tightening policy.
Singapore MAS Chief: Beware of Four Key Risks
He said that there is a possibility that the monetary tightening policy will be stricter than what the market estimates. Singapore’s central bank chief said that Singapore is currently facing a difficult scenario including inflation and a lack of workforce. As such, Singapore MAS is expected to introduce a stricter monetary tightening policy to reduce the effect of inflation.
According to the economists interviewed by Bloomberg, Singapore’s economy is expected to grow by 3.6% this year, which is lower than last year’s 8.6%.
