Singapore Dollar: MAS pause keeps policy band unchanged – DBS

DBS Group Research economists, led by Chua Han Teng, say the Monetary Authority of Singapore (MAS) left its Singapore Dollar (SGD) Nominal Effective Exchange Rate (NEER) policy band unchanged at the October 2026 review after two earlier tightening moves. The pause reflects lower-than-expected 2026 inflation and expectations that slightly elevated price pressures will ease from mid-2027. DBS also revises Singapore growth and inflation forecasts higher.

MAS holds SGD NEER settings steady

"The Monetary Authority of Singapore (MAS) did not tighten its SGD policy a third time this year."

"The SGD NEER policy band’s slope, width, and mid-point were left unchanged at the October 14 review, following a “very slight” increase in the slope in July, which was less than the pace of the “slight increase” in April."

"Policymakers expect slightly elevated underlying price pressures in the near term, but see them easing more discernibly from the middle of 2027."

"Concurrently, economic growth in 3Q26 based on advance estimates was robust, but a steady expansion in the coming quarters would still result in a narrower positive output gap, capping underlying inflationary pressures."

"We account for stronger-than-expected expansion in the first three quarters of 2026, and our expectations for normalised but firm and above-potential growth in the coming quarters."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)