SINGAPORE: Singapore’s central bank kept its monetary policy settings unchanged on Thursday, as most analysts polled by Reuters had expected.
The Monetary Authority of Singapore (MAS) said it will maintain the prevailing rate of appreciation in its exchange rate-based policy band known as the Singapore dollar nominal effective exchange rate, or S$NEER.
There would be no change to the width of the policy band or the level at which it is centred.
“The risks to the growth and inflation outlook are tilted to the upside at this point.
“Persistently stronger-than-expected GDP growth could lead to higher wage growth and boost consumer sentiment, exacerbating demand-pull inflationary pressures,” the MAS said.
Of the 16 analysts polled by Reuters ahead of the review, 15 expected the MAS to keep policy settings unchanged, citing a resilient growth outlook buoyed by semiconductor exports. Only one had expected a tightening.
The decision came as preliminary government data showed the economy grew 4.8% in 2025, higher than a government forecast of around 4.0%, while core inflation was 1.2% year on year in December.
