Singapore Central Bank Maintains Monetary Policy, Keeps S$NEER Policy Band Unchanged

SINGAPORE, Oct 14 (Bernama) -- The Monetary Authority of Singapore (MAS) has maintained its monetary policy stance, keeping the Singapore dollar nominal effective exchange rate (S$NEER) policy band unchanged following two consecutive hikes.

In a statement today, MAS said Singapore's economy should continue to expand at a firm pace in the immediate quarters ahead, moderating thereafter as the artificial intelligence (AI) cycle eases from its exceptional pace and global financial conditions tighten.

The central bank noted that core inflation is projected to ease discernibly from the middle of next year, as supply-driven imported inflation slows and domestic costs stay subdued.

Core inflation is forecast to average between 1.5 and 2.0 per cent in 2026, while CPI-all items inflation is expected to be around 2.0 per cent.

Next year, MAS’ core and CPI-all items inflation rates are projected to average 1.5 to 2.5 per cent.

"The current appreciating policy band will allow S$NEER to continue to strengthen and lean against the anticipated near-term rise in imported inflation, ensuring the gradual easing of inflationary pressures in 2027.

"MAS is well-positioned to respond effectively to any risk to medium-term price stability and will continue to closely monitor economic developments," it said.  

-- BERNAMA