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SG: Monetary Authority Announcement
Highlights
The Monetary Authority of Singapore has announced at its meeting today that it will retain current monetary policy settings. The MAS pursues its inflation and growth objectives by adjusting the direction, slope, width, and central level of an undisclosed"band" around its measure of Singapore's nominal effective exchange rate. Officials today announced that they will target the same pace of appreciation.
In the statement accompanying today's decision, officials note that GDP data showed solid growth, largely reflecting strong investment spending and export growth driven by AI-demand. They expect further steady expansion in the near-term. Officials also noted risks to the inflation outlook but expect both annual headline and core inflation to be close to 2.0 percent in 2026 and be in the 1.5-2.5 percent range in 2027.
Based on this assessment, officials concluded that the current rate of currency appreciation should ensure medium-term price stability. The MAS has shown in the past a willingness to make unscheduled adjustments to policy settings and officials advised today that they will closely monitor economic developments and are"well-positioned to respond effectively to any risk to medium-term price stability".