Monetary Policy Tightened in Singapore – Currency Thoughts
Monetary Policy Tightened in Singapore
April 14, 2026
Monetary policy in Singapore, which subordinates interest rates to whatever it takes to achieve a target for the economy’s currency, has been tightened for the first time since April 2022. Policy is reviewed on a quarterly basis and was last changed in January and April of 2025 when slight easings were implemented. Three parameters define the weighted Singapore dollar’s target: the mid-point of an allowable trading band, the width of that band, and the band’s intended slope. A statement released by the Monetary Authority of Singapore after this latest review paints a picture of big uncertainties to both growth and inflation related to the blockade of the the Strait of Hormuz.
GDP growth in the Singapore economy will slow over the course of this year, while the output gap should average around zero percent. Singapore’s imported energy costs have already risen. Prices of a wider range of imported goods and services are expected to increase in the quarters ahead. Consequently, MAS Core Inflation will pick up and remain elevated over the next few quarters.
Copyright 2026, Larry Greenberg. All rights reserved.
Tags: Monetary Authority of Singapore
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