MAS keeps Singdollar policy unchanged as economy shows resilience

Decision widely expected and comes amid uncertainty over outlook due to US tariffs

- Ovais Subhani

Singapore's central bank left the pace of the local currency's trade-weighted appreciation unchanged, as the economy continues to show resilience despite the drag on global trade from US President Donald Trump's tariffs.

The Monetary Authority of Singapore (MAS) said core inflation - which excludes private transport and accommodation costs to better represent household expenses - will average 0.5 per cent in 2025, and between 0.5 per cent and 1.5 per cent in 2026.

In July, MAS projected core inflation to average 0.5 per cent to 1.5 per cent in 2025.

"MAS will therefore maintain the prevailing rate of appreciation of the S$Neer policy band. There will be no change to its width and the level at which it is centred," it announced on Oct 14.

The decision to keep monetary policy unchanged was widely expected.

Unlike other central banks, MAS manages monetary policy by allowing the local dollar to rise or fall against a basket of currencies of Singapore's main trading partners within an undisclosed trading band, called the S$Neer.

MAS had eased the pace of S$Neer appreciation twice earlier in 2025 - in January and April - as Mr Trump unleashed a slew of tariffs on almost all of America's trading partners.