Regarding long-term inflation expectations, in China these have stabilized at around 3 percent with both short- and long-term inflation expectations stabilizing and becoming closer in recent years. In Malaysia, long-term inflation expectations have stabilized at around 2–3 percent. Singapore’s inflation has fluctuated somewhat largely, but its inflation expectations have remained stable at around 2 percent.
The relatively stable inflation expectations of these economies may imply that their monetary policy conducts are placing a higher priority on price stability. Differences between inflation-targeting and non-inflation-targeting economies The six inflation-targeting economies regard short-term policy interest rates as their operational target for monetary policy.