Singapore Holds Monetary Policy Steady

The Monetary Authority of Singapore (MAS) held monetary policy steady for a third consecutive review on January 29, 2026, maintaining the slope, width, and center of the Singapore dollar nominal effective exchange rate (S$NEER) policy band. However, the central bank lifted its 2026 inflation outlook, projecting both core and headline inflation at 1%–2%, up from the previous forecast range of 0.5%–1.5%. The policy board assessed that risks to both growth and inflation are tilted to the upside, noting that persistently stronger-than-expected economic growth could fuel faster wage gains and improve consumer sentiment, thereby adding to inflationary pressures. In addition, ongoing geopolitical developments may push up imported costs. MAS also said economic growth is likely to remain resilient in 2026, while underlying price pressures are gradually returning closer to their long-term trend.

The Monetary Authority of Singapore (MAS) left its monetary policy unchanged on Tuesday, maintaining the rate of appreciation of the Singapore dollar nominal effective exchange rate (S$NEER) band, with no change to its width or centre. Having eased policy twice this year, the central bank said it remains well-positioned to respond to risks to medium-term price stability and is closely monitoring global uncertainties. Advance estimates showed the country's Q3 GDP rose 1.3% qoq, slightly below Q2’s 1.5% but above expectations, supported by manufacturing and domestic demand despite U.S. tariff headwinds. Year-on-year growth moderated to 2.9% from 4.5%. MAS expects growth to ease as trade-related sectors normalise, though AI investment, infrastructure spending, and financial conditions should support activity. GDP is projected to return to near-trend in 2026, with core inflation averaging 0.5% in 2025 and rising to 0.5–1.5% in 2026.

The Monetary Authority of Singapore (MAS) kept its policy stance unchanged on Wednesday, maintaining the rate of appreciation of the Singapore dollar nominal effective exchange rate (S$NEER) band after easing in its last two meetings. The width and center of the band were also left unchanged, with the MAS citing risks from potential U.S. tariffs. The central bank said it “is in an appropriate position to respond to risks to medium-term price stability.” On the economy, GDP growth is expected to slow in H2 of 2025 after a strong first half. Trade-related sectors may ease, while construction and parts of financial services could be helped by increased infrastructure investment and more accommodative financial conditions. However, growth prospects remain uncertain, particularly into 2026. Cost pressures are expected to stay contained in the near term, with MAS core inflation projected to rise slightly later in 2025. For the year, both core and headline inflation are forecast at 0.5–1.5%.