The Monetary Authority of Singapore (MAS) on Monday unexpectedly tightened monetary policy, slightly increasing the rate of appreciation of its Singapore dollar nominal effective exchange rate (S$NEER) policy band, while leaving the width and center of the band unchanged. “In an environment of continued heightened uncertainty, this calibrated adjustment to the policy stance builds on the tightening in April,” the central bank said in a statement.
The move came despite June core inflation easing to 1.6% year-on-year, with MAS warning that underlying price pressures are likely to intensify from July amid rising oil prices, and to remain elevated before easing around mid-2027. The latest decision was smaller than April’s move—which ended a pause in tightening that had been in place since July 2025—reflecting both persistent inflation concerns and confidence in the growth outlook.
Flash estimates showed that GDP expanded 5.7% year-on-year in the second quarter of 2026, far exceeding expectations and underscoring the resilience of economic activity despite ongoing global uncertainty.
