Politics · Singapore Bureau
MAS holds policy steady after two rate rises this year
Singapore's central bank has kept monetary policy unchanged, maintaining its measured approach to inflation control. The Monetary Authority of Singapore also revised down its core inflation forecast, signalling confidence in its tightening measures.
LSN Singapore ·
The Monetary Authority of Singapore (MAS) has decided to hold its monetary policy stance, making no changes following two rate increases implemented earlier in 2024.
The decision reflects the central bank's assessment that its previous tightening moves remain appropriate for current economic conditions. MAS has been gradually adjusting policy to manage inflationary pressures while supporting sustainable growth in the city-state's economy.
In a sign of increased confidence in inflation containment, MAS narrowed its core inflation forecast for the year to between 1.5 and 2 per cent, down from its earlier range of 1.5 to 2.5 per cent. The revision suggests that price pressures are moderating as expected.
The central bank's measured approach reflects a balancing act between managing inflation risks and avoiding excessive restraint on economic activity. With two rate adjustments already implemented this year, MAS appears satisfied that its policy settings are appropriately calibrated to address the inflation outlook while maintaining financial stability.
The decision maintains MAS's gradual, data-dependent approach to monetary policy adjustments, with the central bank continuing to assess economic conditions closely as it navigates the path ahead.