{
  "id": 14331760,
  "title": "MAS keeps Singdollar appreciation rate unchanged but warns of elevated inflation",
  "url": "https://urgent.news/2026/10/14/mas-keeps-singdollar-appreciation-rate-unchanged-but-warns-of",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-14T00:18:05.000Z",
  "source": {
    "name": "Straits Times Business",
    "slug": "straits-times-business",
    "url": "https://www.straitstimes.com/business/mas-keeps-singdollar-appreciation-rate-unchanged-but-warns-of-elevated-inflation"
  },
  "original_language": "en",
  "account": "Singapore's central bank, the Monetary Authority of Singapore (MAS), has kept its monetary policy stance unchanged, but has cautioned about persistently elevated inflation due to persistent energy price pressures stemming from the Iran war. The MAS stated that it will maintain the rate of appreciation of the Singapore dollar's trade-weighted value, known as the Singapore dollar nominal effective exchange rate (S$NEER) policy band. Unlike many other central banks that target interest rates, the MAS uses the S$NEER, a trade-weighted basket of currencies of Singapore's key trading partners, due to the significant influence of exchange rates on inflation in a small and open economy like Singapore, where exports and imports constitute more than 300% of GDP, and over 40% of domestic spending is on imports. The MAS affirmed that the existing policy band will allow the S$NEER to continue strengthening, helping to counter anticipated near-term rises in imported inflation and easing inflationary pressures by the end of 2027. Despite facing ongoing inflationary challenges due to the unresolved energy crisis from the Iran war, the MAS has tightened its policy stance twice in 2026, in April and July, leading to a stronger S$NEER which dampens the impact of rising import costs. The global benchmark for crude oil, Brent, was around US$106 per barrel on Oct 14, a more than 70% increase since the beginning of the year, as Middle East supplies remain constrained due to the Iran war and conflict between Saudi Arabia and Yemen. The central bank also noted that global and regional food prices are expected to rise as costlier inputs and adverse weather impact food production. The MAS indicated that firming imported cost pressures will keep core and all-items inflation elevated in the coming months, with core inflation projected to average 1.5% to 2.0% for 2026 as a whole, and all-items inflation around 2%. However, the MAS expects inflation to ease more noticeably in the second half of 2027 as global energy prices gradually moderate. Despite the current inflation concerns, economic growth remains a priority for the central bank, with Singapore's GDP growing by 5.4% year-on-year in the third quarter, as estimated by the Ministry of Energy, Trade and Industry.",
  "summary": "Central bank is wary of persistent energy price pressures from the Iran war.",
  "key_points": [],
  "editors_take": null,
  "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."
}