Economists split on MAS monetary policy after surprise growth

Economists are split on whether Singapore's central bank will loosen monetary policy or leave settings unchanged in its scheduled review next week, as the economy remains resilient despite weakening global growth.

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Of 12 analysts Reuters polled, six expect the Monetary Authority of Singapore (MAS) to loosen its currency-based monetary policy at the review on July 30 to counter an expected negative output gap in the economy. The other six expect no change in policy.

MAS already eased monetary policy in January and April in 2025 on growth concerns due to US tariffs, after holding settings since a tightening in October 2022. The economy, however, is posting better-than-expected results due to front-loading activity.

Singapore avoided a technical recession after the economy grew 1.4 per cent quarter on quarter in the second quarter of 2025, according to preliminary government data released last week.