Overview
- MAS kept the prevailing rate of appreciation of the S$NEER policy band unchanged, with no change to its width or centre.
- The central bank now projects core and headline CPI at 1.0–2.0% in 2026, up from 0.5–1.5%.
- Officials expect near-term activity to stay resilient, with full-year growth moderating and the positive output gap narrowing.
- AI-driven tech demand, construction and financial services are seen supporting growth, while higher tariffs and geopolitical shocks pose risks to trade and prices.
- The hold matched market expectations, with a Reuters poll showing 15 of 16 analysts forecasting no change, and MAS reiterated readiness to adjust settings if medium-term price risks intensify.