Singapore shares opened lower on Monday after the Monetary Authority of Singapore tightened its monetary policy for a second consecutive review.

The benchmark Straits Times Index fell 0.21%, or 11.5 points, to 5,576.840 at the open.

Defying market expectations for a hold, the central bank slightly raised the rate of appreciation of the Singapore dollar nominal effective exchange rate (S$NEER) policy band, as it expects external price pressures to keep inflation elevated despite contained domestic cost pressures.