MAS tightens policy for first time since 2022
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The Monetary Authority of Singapore has tightened its monetary policy for the first time since 2022 due to rising oil and natural gas prices. The move aims to allow the Singapore dollar to appreciate and mitigate the impact of increasing import costs on the economy.
Singapore's central bank has tightened its monetary policy stance. The Monetary Authority of Singapore steepened the slope of the Singapore dollar nominal effective exchange rate policy band. This move signals that the currency will appreciate, dampening the impact of rising import costs. Rising oil and natural gas prices due to the Iran war have driven this decision. The central bank also raised its inflation forecasts for 2026. Singapore's economy is expected to slow in the coming quarters, with the Trade and Industry Ministry reporting a 4.6% year-on-year growth in the first quarter of 2026.
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