UOB analysts see potential for another 25bps increase in Singapore’s S$NEER slope if energy prices sustain inflation pressures.
The Monetary Authority of Singapore maintained a calibrated tightening stance in its July 2026 policy review, raising the S$NEER slope to an estimated 1.25% per annum. The adjustment was smaller than April’s move, reflecting a measured approach to policy normalization.
UOB strategists expect the current slope setting to remain unchanged through 2027 but warn of a possible 25bps steepening to 1.50% in late 2026 if energy prices stay elevated or demand-driven inflation emerges. The MAS left the NEER band’s width and center unchanged, focusing solely on the appreciation rate.
Markets will monitor energy trends and output gaps for signs of broader inflationary pressures that could prompt further tightening.