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2026-04-06 12:26:35
[Singapore Monetary Authority May Significantly Tighten Monetary Policy in April] 1. The market expects the Monetary Authority of Singapore (MAS) to raise the slope of the Singapore dollar's nominal effective exchange rate policy band in April, potentially by 50 basis points to 1.0%, and may take similar tightening measures again in July. 2. Inflationary pressures from rising energy prices, coupled with continued strong economic growth, provide support for policy tightening. Singapore's GDP is projected to grow by 5% in 2025, with growth momentum continuing into 2026. 3. Core inflation rose 1.4% year-on-year in February, higher than the median forecast, while the overall inflation rate was 1.2%. The MAS has raised its 2026 inflation forecast range from 0.5%–1.5% to 1.0%–2.0%, mainly considering rising labor and energy costs. 4. Analysts estimate that if oil prices break through US$100 per barrel, it could push core inflation up by 0.5 percentage points. Although the Purchasing Managers' Index (PMI) and electricity demand have shown resilience, persistently high oil prices will continue to put pressure on the economic outlook.
