Singapore Eases Monetary Policy for First Time Since 2020

The Monetary Authority of Singapore adjusts its currency policy as inflation cools and slower economic growth is projected for 2025.

The Monetary Authority of Singapore (MAS) has reduced the slope of its Singapore dollar nominal effective exchange rate (S$NEER) policy band for the first time in nearly five years.
This adjustment reflects expectations of slower GDP growth, projected at 1% to 3% in 2025, compared to 4% in 2024.
Core inflation forecasts for 2025 have been lowered to 1% to 2%, down from the previous estimate of 1.5% to 2.5%, as price pressures ease.
Economists anticipate further policy easing this year, though opinions differ on the timing of additional moves.
The Singapore dollar is expected to weaken slightly but remain relatively stable, with limited depreciation projected against major currencies.