Singapore Holds Monetary Policy After Two Tightenings

The Monetary Authority of Singapore (MAS) left monetary policy unchanged on Wednesday, pausing its tightening drive after back-to-back moves in April and July. The central bank maintained the Singapore dollar nominal effective exchange rate (S$NEER) appreciation band, including its width and midpoint. The decision followed a 5.4% yoy growth in the city’s economy in Q3 2026, easing from a four-year high of 5.9% in the prior quarter, according to advance estimates, with full-year GDP projected at 4-1/2–5-1/2%. MAS expects firm near-term growth before moderating as the AI cycle cools and global financial conditions tighten. Meanwhile, core inflation is projected to ease from mid-2027 as imported cost pressures fade and domestic inflation stays subdued. The board narrowed its 2026 core inflation forecast to 1-1/2–2.0% and sees headline inflation around 2.0%; for 2027, both measures are expected to average 1-1/2–2-1/2%.

The Monetary Authority of Singapore (MAS) on Monday unexpectedly tightened monetary policy by slightly increasing the rate of appreciation of its Singapore dollar nominal effective exchange rate (S$NEER) policy band, while leaving the width and center of the band unchanged. "In an environment of continued heightened uncertainty, this calibrated adjustment to the policy stance builds on the tightening in April," the central bank said in a statement. The move came despite June core inflation easing to 1.6% yoy, with MAS warning that underlying price pressures are set to intensify from July amid rising oil prices and remain elevated before easing around mid-2027. The latest decision was smaller than April's move, which ended a pause that had been in place since July 2025, reflecting both inflation concerns and confidence in the economy. Flash data showed GDP expanded 5.7% yoy in Q2 2026, far exceeding expectations and underscoring resilient economic activity despite global uncertainty.

The Monetary Authority of Singapore (MAS) tightened its policy stance for the first time in three years on Tuesday, in a widely expected move, as it braces for potential economic fallout from the Middle East conflict. The central bank slightly increased the rate of appreciation of the Singapore dollar nominal effective exchange rate (S$NEER) band, while keeping its width and centre unchanged. Policymakers expect Singapore’s GDP growth to ease this year, with output gap averaging around zero. At the same time, rising imported energy costs and broader price pressures are likely to lift MAS Core Inflation in the near term. Forecasts for both MAS Core Inflation and CPI-All Items inflation were raised to 1-1/2% to 2-1/2% from 1% to 2.0%. Private transport costs are set to increase due to higher fuel prices, offset by softer inflation in accommodation. MAS stressed it remains well-positioned to safeguard medium-term price stability and stands ready to curb excessive volatility in the S$NEER.