Singapore’s central bank on April 14 tightened its monetary policy stance for the first time since 2022 to allow for a stronger currency in the face of soaring oil and natural gas prices from the Iran war.

The Monetary Authority of Singapore said it has steepened the slope of the Singapore dollar nominal effective exchange rate (S$NEER) policy band – signalling that it will allow the currency to appreciate and dampen the impact of rising import costs.

What this policy change could mean for the cost of living in Singapore? Will it meaningfully ease price pressures for households? How might businesses be affected? And what does it signal about the economic outlook in the months ahead?

On The Big Story, Hongbin Jeong speaks with Tay Qi Hang, Asia Analyst, Economist Intelligence Unit, to find out more.