MAS holds monetary policy settings, pausing after two straight tightenings
Core inflation forecast for 2026 narrows to 1.5 to 2% as central bank sees price pressures easing from mid-2027
On Oct 14, the Monetary Authority of Singapore (MAS) left monetary policy settings unchanged, ending two consecutive tightening measures. The central bank maintained the nominal effective exchange rate (NEER) policy band, without altering its width or the level at which it is centered. MAS also revised its forecast for 2026 core inflation down to 1.5 to 2 percent, from a previous range of 1.5 to 2.5 percent, with headline inflation projected at around 2 percent.
For 2027, both core and headline inflation are expected to average 1.5 to 2.5 percent. The decision came as a surprise to many economists; out of 20 polled by Bloomberg, only 3 predicted no change, while 17 forecasted a steeper slope. MAS stated that the current policy band would help the Singapore dollar continue to strengthen, countering the anticipated rise in imported inflation and easing inflationary pressures by mid-2027.
The bank remains well-positioned to respond effectively to any risks to medium-term price stability and will continue to monitor economic developments closely.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
