Singapore's Central Bank Holds Steady on Monetary Policy

Singapore's central bank, the Monetary Authority of Singapore (MAS), has maintained its current monetary policy settings. This decision aligns with the expectations of most analysts, who cite a strong growth outlook backed by semiconductor exports. The central bank acknowledges upside risks to growth and inflation.

The Monetary Authority of Singapore (MAS) made headlines today as it decided to leave its monetary policy settings unchanged. This move was widely anticipated by analysts, with 15 out of 16 polled by Reuters predicting no changes. Only one analyst foresaw a possible tightening of the policy.

According to the MAS, the rate of appreciation for the Singapore dollar nominal effective exchange rate will remain steady within its existing policy band. This decision comes amidst signs of a robust economic growth supported by strong semiconductor exports, which present upside risks to both GDP growth and inflation.

Recent data revealed Singapore's economy grew by 4.8% in 2025, surpassing the government's forecast of approximately 4.0%. Core inflation was recorded at 1.2% for the year up to December. The MAS cautioned that persistent GDP growth could spur higher wage increases and consumer spending, leading to increased inflationary pressures.

(With inputs from agencies.)