Within the concept of macroeconomics, in below the situation what economic policies would be implemented by the government in order to solve the problem?

The policy band is now in a "sweet spot" given worries about inflation and weaker global growth prospects, DBS Group Research analysts said in a Friday note. "Going forward, we believe the MAS will become more data dependent in future policy decisions." For its part, the central bank's statement flagged concerns about higher prices. "Core inflation will stay elevated over the next few quarters, as imported inflation remains significant and a tight labor market supports strong wage increases," the MAS said. The Singapore dollar + last traded at 1.4234 against the dollar. Goods and services tax hike On the planned goods and services tax (GST) hike slated for January 2023 and 2024, the central bank said it "will result in a one-off step-up in the price level," though its impact on inflation "should be transitory." The MAS said that excluding the effects of the tax hike, it expects Singapore's core inflation to remain above trend at between 2.5% to 3.5% and headline inflation at between 4.5% to 5.5%. In August, core inflation rose to 5.1% while headline inflation was at 7.5%.She pointed out that \"there is downside risk depending on what happens with the major economies\" and cited as an example the US. Fed aggressively raising borrowing costs despite a growth slowdown. \"I think that's really what is troubling a lot of people these days, at what point would the policymakers start to pivot and say that okay, the growth slowdown has gone far enough,\" she told CNBC'S uawk Box Asia.\" Alex Holmes, an economist at Oxford Economics, said the 1.5 % quarterly jump in Singapore's GDP is unlikely to be repeated, pointing to potential recessions in export markets. Ination and interest rates will also be headwinds for domestic demand, he said in a note. Singapore tightens policy Meanwhile, the Monetary Authority of Singapore tightened policy in a widely expected move, as rising costs continue to weigh on the economy. The central bank said it will re-center the midpoint of its exchange rate policy band, known as the Singapore dollar Nominal Efective Exchange Rate, S$NEER. Singapore controls policy through its exchange rate rather than interest rates, and can also adjust the slope and width of the band. It manages the strength or weakness of the Singapore dollar against a basket of currencies of its main trading partners. GDP came in at 4.4% for the third quarter, much higher than 3.4% predicted by analysts in a Reuters poll, and in line with growth in the second quarter. The Southeast Asian country avoided a technical recession, with quarterly GDP growth coming in a 1.5% on a seasonally adjusted basis, after a 0.2% contraction in the second quarter from the first quarter. Meanwhile, the Monetary Authority of Singapore tightened policy in a widely expected move as inflation pressures weigh on the economy