Singapore’s central bank, the Monetary Authority of Singapore (MAS), has kept its monetary policy settings unchanged for a third straight review while raising its inflation forecasts for 2026, expecting both core and headline inflation to average between 1 % and 2 %. The decision reflects MAS’s careful balancing of price pressures and economic growth prospects amid global uncertainties.
Inflation outlook rises for 2026
MAS said its current exchange rate-based policy band settings remain appropriate, noting that the Singapore dollar nominal effective exchange rate (S$NEER) has stayed firm, while inflation pressures are gradually building due to wage and service costs.
Economists say the unchanged policy stance signals MAS’s confidence in the underlying economy, even as it remains vigilant of external risks and potential price shocks in the year ahead.
