Singapore’s central bank raised the SGD nominal effective exchange rate slope, citing strong GDP growth and inflation concerns.
The Monetary Authority of Singapore (MAS) surprised markets by tightening monetary policy on 27 July 2026, increasing the Singapore Dollar (SGD) Nominal Effective Exchange Rate (NEER) slope by 0.25% to 1.25%. This marks the second tightening move in 2026, following a prior adjustment in April.
The decision reflects confidence in Singapore’s economic outlook, with GDP growth now forecast at 4.6% for 2026, up from a previous estimate of 3.3%. Strong performance in the AI sector, construction, and services underpins the upgrade. Inflation remains a key focus for the central bank.
Analysts expect another MAS tightening in October, potentially raising the SGD NEER slope to 1.50%. The move supports the SGD and reinforces a positive outlook for Singapore equities, which are seen as high-quality and defensive.