MAS Keeps Singdollar Policy Unchanged Amid US Tariff Risks

Move comes after surprisingly strong economic results in first half

- Ovais Subhani

Singapore's central bank left the pace of the local currency's trade-weighted appreciation unchanged, after the economy's surprisingly strong performance in the first half of the year despite the drag from US President Donald Trump's tariffs.

The Monetary Authority of Singapore (MAS) also kept its forecast for 2025 core inflation—which excludes private transport and accommodation costs to better represent household expenses—at an average of 0.5 per cent to 1.5 per cent.

"MAS will maintain the prevailing rate of appreciation of the S$Neer (Singapore dollar nominal effective exchange rate) policy band. There will be no change to its width and the level at which it is centred," it announced on July 30.

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

MAS noted that it had eased the pace of S$Neer appreciation twice earlier in 2025—in January and April—and is now "in an appropriate position to respond to risks to medium-term price stability".

It also noted that despite uncertainty over the outlook, the global economy and Singapore's domestic economy have been resilient thus far.