The Monetary Authority of Singapore (MAS) held monetary policy steady for a third consecutive review on January 29, 2026, maintaining the slope, width, and center of the Singapore dollar nominal effective exchange rate (S$NEER) policy band. However, the central bank lifted its 2026 inflation outlook, projecting both core and headline inflation at 1%–2%, up from the previous forecast range of 0.5%–1.5%. The policy board assessed that risks to both growth and inflation are tilted to the upside, noting that persistently stronger-than-expected economic growth could fuel faster wage gains and improve consumer sentiment, thereby adding to inflationary pressures. In addition, ongoing geopolitical developments may push up imported costs. MAS also said economic growth is likely to remain resilient in 2026, while underlying price pressures are gradually returning closer to their long-term trend.
