The Monetary Authority of Singapore (MAS) was widely expected to keep policy unchanged at its meeting. 10 of 14 analysts in a Reuters poll forecasting no adjustments to its exchange-rate based framework.
- MAS maintained the prevailing rate of appreciation and kept the band’s width and centre unchanged.
From the MAS:
- In 2026, GDP growth is projected to slow in line with external developments to a near-trend pace
- In 2026, sees output gap narrows to around 0%
- Singapore’s GDP growth is expected to moderate from this above-trend pace in the upcoming quarters
- GDP growth forecasts for 2025 and 2026 will be announced in November by MTI.
- Singapore’s economic growth has turned out stronger than expected and the output gap will remain positive in 2025 and come in around 0% next year
- All in, MAS core inflation is forecast to trough in the near term and rise gradually thereafter
- In an appropriate position to respond effectively to any risk to medium-term price stability
- All in, MAS core inflation should average around 0.5% for 2025 as a whole and come in between 0.5−1.5% in 2026.
- Core inflation could stay lower for longer should growth be more hesitant and weaker than projected.
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Data also released;
Singapore GDP Q3 2.9% y/y
- expected 2.0%, prior 4.4%
+1.3% q/q
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The MAS, which manages policy through the slope, width, and midpoint of the Singapore dollar nominal effective exchange rate (SGD NEER) band, last left settings steady in July, maintaining the prevailing rate of appreciation and keeping the band’s width and centre unchanged.
