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Singapore adjusts for sharp recovery

Singapore’s central bank tightened monetary policy aggressively on Wednesday to cool an economy that posted the fastest growth on record in the first quarter and faces rising inflationary risks.

The Singapore government also raised its projections for economic growth and inflation for this year, highlighting the sharp rebound in the bellwether for Asia’s economy, a driving force behind the world’s recovery from the financial crisis.

The government raised its inflation outlook for this year to 2.5 to 3.5 percent from 2 to 3 percent and lifted its GDP growth forecast to 7-9 percent from 4.5-6.5 percent.