Singapore’s central bank raises the SGD NEER slope slightly, signaling heightened concern over inflation despite stable growth forecasts.
The Monetary Authority of Singapore (MAS) tightened its monetary policy for the second consecutive meeting, increasing the appreciation rate of the Singapore Dollar (SGD) Nominal Effective Exchange Rate (NEER) slope. The move was described as smaller than April’s adjustment, with no changes to the band’s center or width.
MAS maintained its 2026 inflation forecasts at 1.5-2.5% for both headline and core measures, despite stronger-than-expected H1 2026 growth of 6%. The decision suggests a focus on inflation risks over growth concerns, even as energy prices have retreated from earlier peaks.
USD/SGD declined modestly to around 1.2890 following the announcement, reflecting limited market reaction to the policy shift.