Singapore and New Zealand Central Banks Weigh Policy Shifts as Middle East Energy Prices Ease

The Monetary Authority of Singapore (MAS) is expected to announce its July policy decision amid a backdrop of lower‑than‑expected inflation and robust second‑quarter growth. Core inflation held at 1.4 % in May despite a 17 % rise in electricity tariffs and a 7.1 % rise in gas tariffs linked to the Iran‑related energy shock. With manufacturing buoyed by artificial‑intelligence demand, analysts see a possible demand‑pull inflation risk that could justify tightening.

Meanwhile, the Reserve Bank of New Zealand’s Monetary Policy Committee raised the official cash rate to 2.50 % as oil and petrochemical prices fell after the partial reopening of the Strait of Hormuz. The move aims to bring headline inflation back toward the 2 % target while the economy’s recovery is expected to resume in the September quarter. Both central banks cite the lingering effects of the Middle‑East conflict on energy costs as a key factor in their policy considerations.