SINGAPORE, July 27 -- The Monetary Authority of Singapore (MAS) caught markets off guard on Monday, tightening its monetary policy despite widespread expectations that it would hold steady.

The move comes as the central bank seeks to curb persistent inflationary pressures. While a previous tightening in April helped dampen prices, MAS warns that external price shocks continue to bleed through to consumers, CNA reported.

The decision defied a Reuters poll of 16 analysts, where 12 predicted no change and only four anticipated a tightening.

By increasing the rate of appreciation of the S$NEER (Singapore dollar nominal effective exchange rate) policy band, MAS is effectively strengthening the Singapore dollar. Unlike other central banks th...