MAS Maintains Monetary Policy Settings Amid Inflation Concerns

Central Bank Expects Inflation to Ease Later in the Year, Economy to Strengthen in 2024

Singapore's central bank, the Monetary Authority of Singapore (MAS), has kept its monetary policy settings unchanged for a third consecutive time.
MAS uses the exchange rate as its main policy tool rather than interest rates, maintaining the slope, width, and center of the currency band.
MAS expects inflation to ease later in the year, with core inflation likely to remain elevated in the earlier part of the year but should decline gradually and step down by the fourth quarter.
MAS estimates core inflation to average between 2.5% and 3.5% in 2024, unchanged from its October forecast.
MAS expects Singapore's economy to strengthen in 2024, with growth projected to be between 1% and 3%.