{
  "id": 14323879,
  "title": "MAS holds policy settings, pausing after two straight tightenings",
  "url": "https://urgent.news/2026/10/14/mas-holds-policy-settings-pausing-after-two-straight-tightenings",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-14T00:06:10.000Z",
  "source": {
    "name": "The Business Times - Singapore",
    "slug": "the-business-times-singapore",
    "url": "https://www.businesstimes.com.sg/singapore/mas-holds-policy-settings-pausing-after-two-straight-tightenings"
  },
  "original_language": "en",
  "account": "Singapore's Monetary Authority (MAS) maintained monetary policy settings on Wednesday, October 14, after two consecutive tightening measures this year. The central bank kept the nominal effective exchange rate (NEER) policy band unchanged, with no adjustments to its width or level. This decision surprised most economists, as 17 out of 20 in a Bloomberg poll had predicted a steeper slope, with only three anticipating no change.\n\nMAS anticipates the economy to continue expanding robustly in the near term before moderating as the AI cycle eases from its exceptional pace and global financial conditions tighten. Core inflation is expected to ease noticeably from mid-2027 as supply-driven imported inflation subsides, and domestic costs remain subdued. The current policy band will enable the S$NEER to continue strengthening, countering the anticipated near-term rise in imported inflation, according to MAS.\n\nThe central bank is well-positioned to respond to any risks to medium-term price stability. July and August saw core inflation rise to 2.1% from 1.5% in the second quarter due to higher import costs impacting various goods and services. MAS now projects core inflation to average 1.5 to 2% in 2026, a narrowing from the 1.5 to 2.5% range. Both core and headline inflation are expected to average 1.5 to 2.5% in 2027.\n\nRisks to inflation remain tilted to the upside for MAS. In April, the central bank raised the slope of the NEER policy band for the first time since 2022, as higher energy prices from the Middle East conflict trickled down to imported costs. MAS tightened again in July, but by a smaller margin. Analysts estimate the slope was increased to 1.25% during that meeting, which remains the estimated level at the time of this decision.",
  "summary": "Core inflation forecast for 2026 narrowed to 1.5 to 2 per cent as MAS sees price pressures easing from mid-2027",
  "key_points": [
    "MAS maintains monetary policy settings unchanged after two consecutive tightening measures.",
    "Central bank anticipates robust economic expansion near term before moderation.",
    "Core inflation expected to ease noticeably from mid-2027 as supply-driven inflation subsides."
  ],
  "editors_take": "The central bank's decision to pause tightening signals a shift toward stabilizing the economy as officials prepare for a moderation in growth and a gradual easing of core inflation.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}