Singapore's Steadfast Monetary Stance Amid Inflation Risks

Singapore's central bank maintains its monetary policy, highlighting potential inflationary risks amidst a robust economic outlook. Analysts suggest future policy adjustments may occur, driven by stronger-than-expected growth metrics. The bank manages its policy through exchange rate bands rather than interest rates, influencing economic sentiment and consumer behavior.

Singapore's central bank has opted to keep its monetary policy settings unchanged, citing upside risks to inflation as the economy shows resilience. The Monetary Authority of Singapore (MAS) will maintain its exchange rate-based policy without modifying its current parameters.

According to MAS, the risks to both growth and inflation are currently tilted upwards, with potential increases in GDP growth and consumer sentiment likely to spur demand-pull inflation. Conversely, the global economy's frailties present certain downside risks.

Analysts, including OCBC economist Selena Ling, noted a slightly hawkish tone from the central bank, indicating a future tightening of policy. Meanwhile, preliminary data showed a robust economic growth of 4.8% in 2025, surpassing earlier government forecasts.

(With inputs from agencies.)