MAS chief Ravi Melon warns Sinkies: No more cheap money and energy anymore forever & ever

[Rogue Trader]

Singapore’s monetary chief says era of cheap money and energy is over​

SINGAPORE​

Saturday, 27 Aug 2022​

8:06 PM MYT​

FILE PHOTO: The logo of the Monetary Authority of Singapore (MAS) is pictured at its building in Singapore in this February 21, 2013 file photo. REUTERS/Edgar Su/File Photo

SINGAPORE, Aug 27 (Bloomberg): Singapore’s central bank chief said that global interest rates are unlikely to return to near zero, joining a chorus of policymakers signaling that inflation is likely to remain high while monetary policy tightening will continue.

"The era of cheap money, cheap labor and cheap energy is over,” said Ravi Menon, managing director of the Monetary Authority of Singapore, in a speech at the Institute of Policy Studies on Tuesday. "Interest rates are not going back to the zero lower bound that we have seen in the last two decades.”

Surging inflation has prompted aggressive increases in rates by central banks including the Federal Reserve and Bank of England.

The MAS has tightened monetary policy four times since October last year. Core inflation hit a near 14-year high last month in the city-state and the financial hub is also experiencing its worst labour shortage in over two decades.

Menon said that costs of borrowing will be higher and "more reflective of time horizons and risk premiums.”

A shrinking labour force, the extension of progressive wages to more sectors of the economy and an increase in the minimum salary to relocate foreigners to the island meant that Singapore can no longer rely on cheap labor, he added.

Prime Minister Lee Hsien Loong earlier this month said the island nation is prepared to boost support measures to help deal with the increased cost of living. Rising costs have always been a hot-button issue for the wealthy city-state that Lee’s political party has dominated since independence in 1965.

Menon said the economy needs to adjust to these new cost structures as money, labor and energy are repricing to reflect their relative scarcities.

"The most effective way is through pervasive innovation and skills upgrading as the basis for higher productivity and wages across the board,” he said. - Bloomberg

 

[mudhatter]

stinky dot sized peesai
money laundering & tax evasion hub
evil prozionist terrorist regime

it deserves it every single time stinkypur is whacked.

 

[Sanitizer]

 

[SBFNews]

No CPF rate adjustment?

 

[mojito]

Thank goodness. Now housing prices can finally fall!

 

[SBFNews]

Thank goodness. Now housing prices can finally fall!

No worries. Tiongs Hongkongers will support the property market. All waiting to flush their cash away from CCP.

 

[rodent2005]

We pay these people millions not to tell us the problems they are hired to solve but to deliver the solutions.

 

[borom]

"The most effective way is through pervasive innovation and skills upgrading as the basis for higher productivity and wages across the board,”
Since no details given , my interpretation is they will bring in more and more foreigners, esp their beloved CECA .
Strange that our so called world class universities have been keeping silent on all the major issues , so I am not even sure what world class means anymore , is it like GST is to help the poor?

 

[hbk75]

U all check 3m sora which mortgages are based on. Everyday goes up one.

 

[red amoeba]

meanwhile, PAP MPs (WP inclusive) pay continue to rise and rise and rise

 

[syed putra]

How will US pay its debt in this high interest rate regime?

 

[hbk75]

How will US pay its debt in this high interest rate regime?

Ask ahleepay to pay lor

 

[laksaboy]

View attachment 157898

Another WEF bitch. Why am I not surprised?

 

[Rogue Trader]

"The most effective way is through pervasive innovation and skills upgrading as the basis for higher productivity and wages across the board,”
Since no details given , my interpretation is they will bring in more and more foreigners, esp their beloved CECA .
Strange that our so called world class universities have been keeping silent on all the major issues , so I am not even sure what world class means anymore , is it like GST is to help the poor?

Yup. No idea except to squeeze sinkies even more and mass Ceca immigration

 

[mojito]

"The most effective way is through pervasive innovation and skills upgrading as the basis for higher productivity and wages across the board,”
Since no details given , my interpretation is they will bring in more and more foreigners, esp their beloved CECA .
Strange that our so called world class universities have been keeping silent on all the major issues , so I am not even sure what world class means anymore , is it like GST is to help the poor?

It not what u know, but who knows your father.

 

[Willamshakespear]

Instead of the hugely popular book entitled 'Who moved my cheese?', setting the sight for blame games, should we hardworking & legendary pragmatic Singaporeans reflect & ask ourselves in the mirror - 'Where lays my cheese?'

 

[Pinkieslut]

Only cheap money for Temasick!