Why did the MAS raise its inflation forecast for 2026?

The MAS raised the forecast to 1.0%–2.0% due to resilient growth and emerging upside risks to prices, suggesting inflation may be stickier than previously anticipated.

How does Singapore manage its monetary policy?

Instead of interest rates, Singapore uses an exchange rate framework (S$NEER), adjusting a currency band's slope and width to manage inflation and growth.

What was Singapore's GDP growth in 2025?

Singapore's GDP grew by 4.8% in 2025, which was higher than the official government guidance of approximately 4.0%.

MAS Holds Policy & Raises Inflation Forecasts | FXPremiere

The Monetary Authority of Singapore maintains its policy settings while raising 2026 inflation forecasts, signaling a vigilant stance amid resilient GDP growth.

The Monetary Authority of Singapore (MAS) has elected to maintain its current monetary policy settings, even as it upwardly revised its inflation projections for 2026. This decision underscores a central bank that is fundamentally comfortable with current growth trajectories but increasingly wary of persistent price pressures emerging in the second half of the decade.

Macroeconomic Context: Growth Outperforms Expectations

Singapore's economic performance in 2025 provided a robust foundation for this latest policy meeting. GDP growth for the previous year printed at a solid 4.8%, significantly outstripping the initial official guidance of approximately 4.0%. While the government anticipates a deliberate downshift in 2026—projecting growth between 1.0% and 3.0%—the underlying momentum remains undeniable. This resilience allows the MAS to maintain a high bar for any shift toward easing.

Monitoring the currency remains vital for regional traders. For those tracking the US dollar's interaction with major Asian hubs, the USDSGD price live reflects the market's immediate digestion of these hawkish-leaning inflation forecasts. Currently, the USD SGD price live shows a market adjusting to the reality that "higher for longer" applies to the Singaporean exchange rate corridor as much as it does to global interest rates.

Revised Inflation Forecasts: A Signal of Vigilance

The most significant takeaway from the MAS statement was the adjustment of both core and headline inflation forecasts for 2026. Projections were moved to a range of 1.0%–2.0%, up from the previous 0.5%–1.5%. Given that December core inflation was recorded at 1.2% year-on-year, the MAS is effectively signaling that the disinflationary process has plateaued. This shift suggests that the USD/SGD price live may face downward pressure as the local currency is used as a tool to dampen imported cost-push inflation.

The Unique Framework of Singaporean Policy

Unlike most central banks that use interest rates as their primary lever, the MAS manages the economy through the Singapore Dollar Nominal Effective Exchange Rate (S$NEER). By adjusting the slope, midpoint, and width of this currency band, the MAS controls inflation by making imports cheaper or more expensive. Consequently, observing the USD SGD price and the USD SGD chart live is essential for understanding the intended restrictive or accommodative nature of the current regime.

Market Implications and the Path Ahead

The USD SGD live chart reveals a currency supported by this inflation-sensitive bias. Traders should note that while the policy was "unchanged," the tone was far from dovish. Stable local rate expectations are expected to persist, though the USD SGD realtime data will continue to be influenced by the Federal Reserve's path and the broader USD to SGD live rate trends.

Looking forward, market participants should watch for wage pressures and labor market tightness in the city-state. If these domestic factors align with rising energy or shipping costs, the MAS may be forced to further steepen the slope of currency appreciation. Keeping an eye on the singapore dollar live performance against the trade-weighted basket will be the primary method for gauging the next policy move.