MAS keeps monetary policy unchanged as Singapore GDP grows 5.4% in Q3
The Monetary Authority of Singapore kept its monetary policy unchanged at its review on Wednesday, Oct 14. The decision followed two rounds of tightening earlier this year, in April and July. MAS said it expects economic growth to stay steady and inflation to ease by mid-2027. As a result, the central bank will keep the current pace of appreciation of the Singapore dollar nominal effective exchange rate policy band. Neither the width of the band nor the level at which it is centred will change. The move surprised markets, since all ten analysts in a Reuters poll had expected another tightening. MAS noted that the S$NEER has strengthened modestly within the upper half of its band since the very slight tightening in July. Singapore's economy, for its part, grew 5.4 per cent in the third quarter.
The Monetary Authority of Singapore (MAS) maintained its monetary policy on Wednesday (Oct 14), following previous tightenings in April and July.Citing an expected steady economic growth and forecasted easing of inflation in mid-2027, the central bank said it will keep the current rate of appreciation of the Singapore dollar nominal effective exchange rate (S$NEER) policy band.There will also be no change to its width and the level at which it is centred.Ten analysts polled earlier by Reuters had all expected a tightening.MAS said the S$NEER has "strengthened modestly" within the upper half of the appreciating policy band since its "very slight" tightening in July."The current appreciating policy band will allow the S$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," it stated.