ECB’s Cipollone Backs Digital Euro as Europe Pushes for Payment System Independence 
Philippine Central Bank Signals Steady Interest Rates as Inflation Rises and Growth Slows 
Thailand Economy Faces Competitiveness Challenges as Strong Baht and U.S. Tariffs Pressure Exports 
U.S. and Taiwan Strengthen AI, Semiconductor, and Drone Cooperation at High-Level Economic Talks 
Japan Declines Comment on BOJ’s Absence From Global Support Statement for Fed Chair Powell. Source: Asturio Cantabrio, CC BY-SA 4.0, via Wikimedia Commons 
U.S. Stock Futures Edge Lower as Tech Earnings and Fed Decision Shape Market Sentiment 
South Korea Industry Minister Heads to Washington Amid U.S. Tariff Hike Concerns 
UK Housing Market Gains Momentum in Early 2026 as Mortgage Rates Fall 
Fed’s Anna Paulson Signals Rate Cuts May Come Later as Inflation Cools and Labor Market Stabilizes 
RBA Expected to Raise Interest Rates by 25 Basis Points in February, ANZ Forecast Says 
Australia Inflation Surprise Fuels Rate Hike Expectations Ahead of RBA Meeting 
Asia Stocks Pause as Tech Earnings, Fed Signals, and Dollar Weakness Drive Markets 
U.S. Urges Japan on Monetary Policy as Yen Volatility Raises Market Concerns 
BOJ Rate Decision in Focus as Yen Weakness and Inflation Shape Market Outlook 
The Monetary Authority of Singapore (MAS) has kept its monetary policy settings unchanged, in line with market expectations, while cautioning that robust economic growth could fuel inflationary pressures in the months ahead. In its latest policy statement released Thursday, MAS said it will maintain the current rate of appreciation for the Singapore dollar nominal effective exchange rate (S$NEER) policy band, along with leaving the width of the band and its central parity unchanged.
The decision reflects MAS’s assessment that Singapore’s economy remains resilient, supported by strong external demand and a recovery in key sectors such as semiconductor exports. Analysts had widely anticipated a policy hold, noting that while growth momentum has strengthened, inflation remains relatively contained for now.
However, MAS emphasized that risks to both growth and inflation are now skewed to the upside. The central bank warned that persistently stronger-than-expected gross domestic product (GDP) growth could translate into faster wage increases and improved consumer confidence. These factors, MAS noted, may intensify domestic demand and contribute to demand-pull inflation over time.
Recent economic data underscore the strength of Singapore’s recovery. Preliminary government figures released earlier this month showed that the economy expanded by 4.8% in 2025, outperforming the official forecast of around 4.0%. This stronger-than-expected GDP growth highlights the economy’s solid footing despite ongoing global uncertainties. Meanwhile, core inflation stood at 1.2% year-on-year in December, suggesting price pressures remain manageable but warrant close monitoring.
MAS’s exchange rate-based monetary policy framework focuses on managing the S$NEER rather than interest rates, making the policy band a key tool for controlling imported inflation and ensuring price stability. By keeping the policy settings steady, MAS is signaling confidence in the current stance while retaining flexibility to respond if inflationary risks intensify.
Looking ahead, the central bank reiterated that it will remain vigilant, closely tracking economic and inflation developments. If growth continues to surprise on the upside and feeds into higher inflation, MAS may consider policy adjustments to safeguard medium-term price stability. For now, the decision to hold reflects a balanced approach amid strong growth, stable inflation, and a cautiously optimistic economic outlook for Singapore.
