Southeast Asia's central banks continue to tighten the reins, although an increase in the cost of money is not without risk for the region.

On Thursday, the Philippine Bankko Sentral ng Pilipinas raised the key interest rate by 75 basis points to 3.25 percent.

The central bank Monetary Authority of Singapore (MAS) tightened monetary policy in the region's financial metropolis for the fourth time since last October: It pushed up the midpoint of the exchange rate range of the Singapore dollar against an undefined basket of other currencies - thus increasing the external value of the Singapore dollar tending.

Unlike other central banks, the MAS uses the exchange rate in the open trading city, not the key interest rate, to curb inflation.

The exchange rate oscillates in an unpublished range against a basket of currencies.

The central bank can adjust the breadth, speed of change and center of this range and thus control the appreciation and depreciation of the Singapore dollar.

The central bankers expect that the price increase in the city-state will increase to more than 4 percent "in a short time".

In April it was 3.4 percent.

Singapore's economy is growing weaker

"Although frictions in global supply chains are easing, external inflationary stimulus has broadened, reflecting tight global commodity and labor markets," the MAS said on Thursday.

At the same time, the Commerce Ministry estimated Singapore's growth rate at 4.8 percent in the second quarter, down from 4 percent in the previous quarter.

Analysts had expected a growth rate of 5.2 percent for the second quarter.

At the same time, MAS, like sovereign wealth fund Temasek Holdings a day earlier, warned of a "significant slowdown" due to higher interest rates in Singapore's key partner countries - which are America, the European Union and China.

In the Philippines, central bank governor Felipe Medalla had repeatedly ruled out a jump of 75 basis points.

Now, however, there were “urgent reasons” for this.

At 6.1 percent, the inflation rate in the island state is as high as it was last in 2018. The target range for the inflation rate is 2 to 4 percent.

The peso has lost 9 percent of its external value this year.

The central bankers in the country with its more than 110 million inhabitants had already raised the key interest rate by 25 basis points in May and June.