Singapore maintains monetary policy unchanged, raises inflation expectations

Singapore has maintained its monetary policy unchanged for the third consecutive time, while raising its inflation expectations, implying that its next move may be to tighten policy. The Monetary Authority of Singapore said on Thursday that it will keep the slope, width, and midpoint of its policy band unchanged. The main policy tool of the central bank is the exchange rate rather than interest rates. A survey of 20 economists showed that 19 predicted this decision. Most economists believe that MAS will take a hawkish stance due to concerns about inflation. Previously released data for December showed that consumer prices remained high for the third consecutive month. MAS has raised its core inflation and overall inflation expectations for 2026 to 1%-2%, up from the previous forecast of 0.5%-1.5%.