Singapore, 29 January 2026 – The Monetary Authority of Singapore (MAS) has kept its exchange rate-based monetary policy settings unchanged in its latest review, while also raising its inflation outlook for 2026, signalling the central bank’s confidence in the economy’s resilience and its cautious vigilance on price pressures.
MAS maintains its current Singapore dollar nominal effective exchange rate (S$NEER) policy band, including the rate of appreciation, midpoint and width of the band, without adjustments, as broadly expected by economists. Singapore manages monetary conditions primarily through exchange rate guidance rather than interest rates, given its open, trade-dependent economy.
At the same time, the central bank raised its inflation forecasts for 2026, now anticipating both core inflation and headline consumer inflation to average between 1.0 per cent and 2.0 per cent, up from the previous forecast range of 0.5 per cent to 1.5 per cent. Core inflation excludes costs such as accommodation and private transport, offering a clearer view of underlying price trends.
MAS highlighted that stronger-than-expected economic growth in 2025, with GDP expanding about 4.8 per cent, and the associated rise in demand could add upward pressures on prices in 2026. Sustained growth may underpin higher wage growth and consumer spending, contributing to inflation.
Despite the uplift in inflation projections, policy settings will remain unchanged for now. Economists generally see MAS as maintaining a neutral stance at this stage, leaving open the possibility of future adjustments if inflation and growth pressures persist later in the year.
