Singapore Monetary Authority Keeps Policy Steady Following Two Tightenings
The Monetary Authority of Singapore maintained its current monetary policy, pausing a tightening cycle that included back-to-back adjustments in April and July. Central bank officials opted to leave the parameters of the Singapore dollar nominal effective exchange rate policy band unchanged, keeping its width, midpoint, and slope intact.
The decision arrives alongside robust economic performance, with third-quarter 2026 gross domestic product expanding 5.4% year-over-year in preliminary estimates. Policymakers project full-year economic growth to land between 4.5% and 5.5%, supported by solid near-term activity before growth moderates as global financial conditions tighten and momentum in the artificial intelligence sector cools.
Inflation trends are also expected to improve over the coming quarters. Officials narrowed the 2026 core inflation target range to 1.5% to 2.0% and project headline inflation near 2.0%. Looking toward 2027, both core and headline inflation are forecast to average between 1.5% and 2.5% as imported cost pressures diminish and domestic price growth stays subdued.
Key points
- The Monetary Authority of Singapore kept its currency policy band unchanged following tightening moves in April and July.
- Singapore's economy grew 5.4% year-over-year in the third quarter of 2026, with full-year GDP projected between 4.5% and 5.5%.
- Core inflation for 2026 is forecast between 1.5% and 2.0%, while headline inflation is expected near 2.0%.
- Both headline and core inflation are projected to average 1.5% to 2.5% in 2027 as import pressures fade.
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How we writeDisclaimerQuestions and answers
Why did Singapore hold its monetary policy unchanged?
The central bank paused its policy tightening following moves in April and July because inflation pressures are stabilizing while economic growth is projected to moderate over time.
What is Singapore's economic growth forecast?
After third-quarter GDP grew 5.4% year-over-year, full-year economic growth is expected to come in between 4.5% and 5.5% before slowing as global conditions tighten.
What is the outlook for inflation in Singapore?
Core inflation is projected between 1.5% and 2.0% in 2026, with headline inflation around 2.0%. In 2027, both metrics are expected to average between 1.5% and 2.5%.