Singapore Monetary Policy Holds Steady Amid Cooling Inflation
Singapore's central bank is expected to maintain its current policy stance as inflation shows signs of easing. A majority of economists surveyed—16 out of 20—anticipate the Monetary Authority of Singapore (MAS) will keep settings unchanged at its upcoming review. Only four analysts, including those from DBS Group Holdings Ltd. and TD Securities, foresee potential easing later this year.
The MAS employs a unique approach among central banks, focusing on currency management rather than interest rate adjustments to stabilize prices. This strategy has seen two policy loosening moves in January and April to counter economic headwinds. Meanwhile, other Asia-Pacific central banks are charting divergent courses—Indonesia and New Zealand continue rate cuts while Thailand, Malaysia and Australia maintain status quo.
