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Singapore Tightens Monetary Policy Again as Inflation Risks Persist

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Singapore tightened monetary policy for a second straight review, according to a press release on Monday.

The Monetary Authority of Singapore (MAS) slightly raised the rate of appreciation of the Singapore dollar nominal effective exchange rate (S$NEER) policy band.

The move follows April's tightening as the central bank expects external price pressures to keep inflation elevated despite contained domestic cost pressures.

MAS expects firm economic growth through the second half of 2026, supported by AI-related investment, construction and the financial sector.

Advance estimates showed gross domestic product grew 5.7% year over year and 1.1% quarter over quarter in the second quarter.

MAS maintained its 1.5% to 2.5% inflation forecast for 2026 and warned renewed energy supply disruptions could keep price pressures elevated.

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