Singapore’s central bank unexpectedly raised the S$NEER slope for the second straight meeting, supporting the SGD near 1.2900.
The Monetary Authority of Singapore (MAS) tightened policy for a second consecutive meeting, increasing the slope of the Singapore Dollar Nominal Effective Exchange Rate (S$NEER) very slightly. USD/SGD consolidated around 1.2900 after retreating from near 1.3000, its highest level since late June.
The move surprised analysts, as only four of 18 in a Bloomberg survey anticipated a slope adjustment. MAS left the policy band’s width and midpoint unchanged, signaling a cautious approach compared to its April tightening. The decision reflects persistent external price pressures expected to feed into domestic inflation.
MAS indicated scope for further tightening this year, citing a projected widening of the economy’s positive output gap in 2026. The next policy decision is due in October.