Monetary Authority of Singapore Slightly Tightens Policy Amid Inflation Risks and Slowing Growth
- brg_news_room
- 7 days ago
- 1 min read
Singapore: The Monetary Authority of Singapore (MAS) slightly increased the rate of appreciation of its S$NEER policy band while keeping its width and midpoint unchanged, citing heightened inflation and growth risks due to evolving Middle East tensions and rising energy costs. Singapore’s GDP grew 4.6% in Q1 2026, below the expected 5.9%, and contracted 0.3% quarter-on-quarter, while core inflation stood at 1.4% y/y in February; MAS raised its 2026 inflation forecast to 1.5%–2.5% from 1.0%–2.0%. Of 13 analysts polled, 11 expected tightening, with further action possible in July depending on inflation trends, while the government announced a USD 785 million support package to mitigate economic impacts. MAS maintained that growth will slow with output gap averaging around 0%, as higher global energy costs increase import prices and broader inflationary pressures.
Source: Reuters
