The Monetary Authority of Singapore (MAS) maintained its Singapore Dollar policy unchanged at its January 29, 2026 review, keeping the S$NEER appreciation slope, width, and level steady. Amid resilient growth and external uncertainties, MAS upgraded 2026 core inflation to 1.0-2.0% (from 0.5-1.5%) and all-items CPI to 1.0-2.0%, citing wage pressures, supply shocks, and global tariffs. Q4 2025 GDP performance was higher than the estimates by 5.7 in Singapore and the full year should record a growth of 5%. The S$NEER trades at the upper half of the price band, which promotes price stability. MAS stays vigilant on AI-driven trade and geopolitical risks while exports face headwinds.
Singapore Dollar Policy Rationale
MAS favors exchange rate guidance over rates for trade-reliant Singapore, where imports drive 40% of spending.
Inflation Drivers Identified
Labor market tightness causes core inflation and accommodation cools but the imported costs go up.
Growth Outlook Balanced
Q1 2026 resilience expected despite global moderation; AI capex buoys electronics chains.
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