Overview
- On Oct 14, 2026, the Monetary Authority of Singapore left the rate of appreciation, the width and the centre of the S$NEER policy band unchanged.
- The decision surprised markets because all 10 analysts polled by Reuters had expected MAS to tighten the policy band further.
- MAS said the current appreciating path of the S$NEER will help curb imported price rises but warned that a sharp, sustained jump in global energy or food prices could force a return to tightening.
- The central bank expects near‑term growth to be firm on AI‑related activity before moderating into 2027 and projects core inflation to stay slightly elevated in 2026 and ease more clearly from mid‑2027, with reporting differing on the 2026 core range (quotes show 1.5–2.0% and 1.5–2.5%).
- Because Singapore is a very open economy and a regional oil‑trading and refining hub, higher global fuel and food costs would hit household and business budgets directly and could prompt MAS to resume tightening at its next policy review.