Singapore surprises with monetary tightening as Q3 GDP grows 6.5%

Central bank's move follows South Korea and New Zealand; COVID clouds outlook

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Singapore's economy is recovering from the worst periods of last year, but the pandemic continues to haunt the city-state. © Reuters

KENTARO IWAMOTO, Nikkei staff writer

SINGAPORE -- Singapore's central bank on Thursday tightened its monetary policy for the first time in three years -- an earlier-than-expected move as the country seeks to reopen its coronavirus-hit economy and manage inflationary pressures.

The city-state, which also reported a preliminary 6.5% increase in gross domestic product for the July-September quarter, follows countries such as South Korea and New Zealand in backing away from an accommodative monetary stance.

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