The Monetary Authority of Singapore (MAS) kept the width, slope, and center point of its Singapore dollar policy band unchanged while raising its inflation forecasts to a 1.5-2.5% range for 2026. This decision follows a first monetary tightening in April 2026, driven by rising imported energy costs that pushed inflation projections from the 1.0-2.0% range to the current 1.5-2.5% band. The city-state, whose trade exchanges exceed 300% of GDP, uses the Singapore dollar nominal effective exchange rate (S$NEER) as its primary monetary policy instrument. The next MAS Monetary Policy Statement is scheduled for July 27, 2026, with market consensus leaning toward another hold. MAS projects GDP growth to slow in 2026, with the output gap averaging near zero percent.
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