MAS Tightens Singapore's Monetary Policy Amid Inflation Risks
The Monetary Authority of Singapore (MAS) has tightened its monetary policy settings amidst the ongoing Iran conflict, according to April's policy statement released Tuesday.The central bank maintained the rate of appreciation of the Singapore dollar nominal effective exchange rate (S$NEER) policy band, with no change to the width of the band or the level at which it was centered, the statement said.Following the breakdown in negotiations between the US and Iran, Singapore could be impacted by energy price volatility and supply chain disruptions.Meanwhile, 2026 forecasts for MAS Core Inflation and CPI-All Items inflation have been revised to between 1.5% and 2.5%."There are considerable risks around the outlook for inflation and growth," MAS said, adding that the Middle East situation is developing and remains highly uncertain.The central bank says the city-state's GDP growth is likely to slow down, with output gap expected to average around 0%.Core inflation was steady at 1.2% year over year during the January-February period, unchanged from the preceding quarter.