MAS Keeps Policy Unchanged, Raises 2026 Inflation Outlook

Singapore's central bank, the Monetary Authority of Singapore, kept its monetary policy settings unchanged at its quarterly review on Thursday, January 29, 2026, while raising its inflation forecasts and signaling potential tightening later in the year amid a resilient economy.

The MAS, which manages monetary policy through the Singapore dollar nominal effective exchange rate policy band rather than interest rates, decided to maintain the prevailing rate of appreciation, along with the band's width and centering. This marks the third consecutive review without changes, following two easing moves in January and April 2025 to support growth. The decision aligned with expectations from nearly all economists surveyed beforehand, who anticipated a steady stance but highlighted a hawkish tilt in the accompanying statement.

In its policy statement, the MAS noted that Singapore's economy remains resilient in the near term after expanding 4.8 percent in 2025, the fastest pace in four years, driven by strong demand for semiconductors and electronics linked to artificial intelligence. This outperformed earlier government projections. However, the bank projected a moderation in growth for...