The Monetary Authority of Singapore maintained the rate of appreciation of the Singapore dollar nominal effective exchange rate policy band, with no change to its width or centre. The decision leaves in place the slight increase in the appreciation rate made in July 2026, allowing the Singapore dollar to strengthen against an expected near-term rise in imported inflation while supporting a gradual easing of price pressures in 2027. Core inflation is expected to remain slightly elevated in the immediate quarters before easing more clearly from mid-2027 as imported cost pressures recede and domestic costs remain subdued. MAS forecasts core inflation of 1.5% to 2.0% and all-items inflation of around 2.0% in 2026, with both measures averaging 1.5% to 2.5% in 2027. Risks remain tilted toward higher inflation, particularly from energy and food prices or broader spillovers from the artificial intelligence boom. Singapore’s economy grew 5.4% year on year and 1.1% on a seasonally adjusted quarterly basis in the third quarter of 2026, led by technology-related sectors. Growth should remain firm in the near term before moderating as artificial intelligence-related activity slows in the second half of 2027 and global financial conditions tighten.
Monetary Authority of Singapore maintains Singapore dollar policy band settings amid near-term imported inflation pressure
The Monetary Authority of Singapore maintained the appreciation rate, width and centre of its Singapore dollar policy band. Core inflation should remain slightly elevated in the near term before easing from mid-2027, although risks are tilted upward. Economic growth is expected to stay firm before moderating as the artificial intelligence cycle slows.