No 'double move' expected from central bank: analyst

This is due to the increasing likelihood of a technical recession.

With private transport and rental costs continue to rise, Maybank said the Monetary Authority of Singapore (MAS) is not expected to enforce a "double move" to tighten the monetary policy.

In a report, Maybank said such a move is not likely as there could be a technical recession, which means there is two consecutive quarters of the economy shrinking.

It also sees MAS tighten monetary policy in October by re-centering the S$NEER to the prevailing level.

"The S$NEER is currently trading at around +1.5% above the implied mid-point, based on our estimates," the analyst said.

It sees MAS to increase headline inflation from 5.5% to 6.5% and core inflation forecast to 3.5%-4.5%.