FX.co ★ Singapore Keeps Policy Unchanged, Raises Inflation Outlook

The Monetary Authority of Singapore (MAS) maintained its monetary policy unchanged for the third consecutive review on January 29, preserving the slope, width, and center of the Singapore dollar nominal effective exchange rate (S$NEER) policy band, aligning with market expectations. Despite maintaining the current policy stance, MAS adjusted its inflation forecast for 2026 upwards, predicting both core and headline inflation to range between 1% and 2%, an increase from the earlier projection of 0.5% to 1.5%. The policy board highlighted that both growth and inflation risks are skewed to the upside. They pointed out that ongoing robust economic growth could lead to faster wage increases and boost consumer confidence, thereby intensifying inflationary pressures. Furthermore, geopolitical developments may elevate imported costs. MAS also indicated that economic growth is expected to remain robust in 2026, while underlying price pressures are gradually aligning closer to their long-term average.