FX.co ★ Singapore Holds Monetary Policy After Two Tightenings

The Monetary Authority of Singapore (MAS) kept monetary policy unchanged on Wednesday, halting its tightening cycle after consecutive moves in April and July. The central bank left the Singapore dollar nominal effective exchange rate (S$NEER) policy band on its current appreciation path, with no changes to the band’s width or midpoint.

The decision came as advance estimates showed Singapore’s economy expanding by 5.4% year-on-year in Q3 2026. For the full year, MAS projects GDP growth in a 4-1/2–5-1/2% range. The authority expects growth to remain firm in the near term, before moderating as the AI-driven upcycle cools and global financial conditions become more restrictive.

MAS also anticipates that core inflation will begin to ease from mid-2027, as imported cost pressures subside and domestic price increases remain contained. The central bank narrowed its 2026 core inflation forecast to 1-1/2–2.0% and projects headline inflation at around 2.0%. For 2027, both core and headline inflation are expected to average between 1-1/2% and 2-1/2%.