Business Maverick: Global economy faces four key risks, warns Singapore monetary authority chief

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The global economy faces not one but four key uncertainties including a downturn next year, according to Singapore central bank chief Ravi Menon, in a signal that policy makers will be in firefighting mode for longer.

He listed the severity of the downturn, inflation’s trajectory in the medium term, impact of geopolitics on markets and climate risk on portfolios as the main risks to the global outlook.

Singapore, like many economies worldwide, is grappling with inflation that’s yet to peak and a tight labour market that still is creating headaches for businesses short on workers as they emerge from the pandemic. The MAS, which has already tightened four times in the past year including two surprise moves, is expected to tighten again next month to slow price growth by the year-end from the current 7% level.

 

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