Singapore’s central bank leaves monetary policy stance unchanged With review in January 2026. Officials maintained the slope, width, and center of the S$NEER band, marking its third consecutive hold.

Monetary Authority of Singapore (MAS) Increased inflation forecast for 2026we expect both core and headline inflation to be between 1% and 2%, up from the previous range of 0.5% to 1.5%.

Quoted by MAS Strong economic performance in 2025The Business Times reported that the GDP growth rate of 4.8% was also cited as a factor for the stable policy stance.

December 2025 inflation data showed both Core and headline interest rates are 1.2%According to CNA, this was slightly higher than previous forecasts.

MAS emphasized that the policy stance remains capable of addressing risks to price stability in the medium term. it signaled Be prepared to respond if inflationary pressures increaseThe Straits Times reported.

Economists say the decision is aimed at balancing stronger growth prospects with the need to monitor rising inflation. central bank S$NEER-based approach I allow it Adjust gradually as neededpointed out Bloomberg.

Xavier Wong, market analyst at eToro, explained: “The central bank now sees inflation remaining higher than previously expected, even though current price pressures remain subdued. A prudent policy with higher inflation rates in the future indicates that MAS is satisfied with today’s situation but cautious about the long-term outlook.”

“The underlying factors have not eased as much as the key numbers suggest. Service costs remain strong, wage growth continues and domestic demand has not softened. With trade flows recovering and the global technology cycle stabilizing, the economy does not require immediate policy easing,” Wong added.

MAS also stressed that although imported inflation remains subdued, domestic service costs and external factors will influence the trajectory in 2026.

read more MAS warns of inflation risks while monetary policy is maintained here.