Introduction Central banks around the world use monetary policy to gear the domestic economy into a certain direction. Monetary policy helps a country to combat inflationary pressures and also increase growth in the economy. Monetary policy is therefore defined as the action of a central bank, that determines the rate and growth of the money supply which in turn affects the interest rates. Many countries in the world, including United States and China, adopt an interest rate policy where central banks increase or decrease interest rates or change the amount of minimum bank reserve requirement rate. However, in the case of Singapore, its monetary policy stance is different from that of other major economies around the world. This has given Singapore the name of an: “unique monetary policy system” Singapore’s Monetary Policy Before we discuss on the recent direction of monetary policy in Singapore, let’s look at how Singapore manages ......