Singapore expected to keep monetary policy unchanged as growth outperforms

By Jun Yuan Yong

SINGAPORE, Jan 26 (Reuters) - Singapore is expected to permission monetary argumentation unchanged astatine a reappraisal connected Thursday, with the maturation outlook supported by beardown request for semiconductor exports and ostentation ​seen nether control.

Out of 16 analysts polled by Reuters, 15 expect the Monetary Authority of Singapore (MAS) to ‌hold disconnected making immoderate changes this week. MAS near settings unchanged successful July and October past twelvemonth aft easing successful January and April.

Singapore's GDP roseate 4.8% successful ‌2025, supra a authorities forecast successful November of astir 4.0% and its erstwhile estimation of 1.5% to 2.5%.

Singapore's beardown electronics purchasing managers' scale speechmaking of 50.9 successful December showed that the tech rhythm had retained momentum, Economist Intelligence Unit Asia expert Tay Qi Hang said.

AI-related request and rising representation spot prices should proceed to payment the semiconductor assemblage successful coming ⁠months, helium said.

"The Q4 2025 maturation outperformance ‌coupled with unchangeable halfway ostentation astatine conscionable supra 1% successful November has reduced near-term unit to ease", helium said.

Standard Chartered main economist Edward Lee said determination was nary urgency to ‍act this period with ostentation nether control.

However, Lee said helium expected MAS to tighten argumentation astatine its April reappraisal arsenic the ostentation rhythm bottoms retired and commercialized uncertainties ease.

However, Bank of American economists said successful a study connected Friday that MAS could tighten ​policy arsenic soon arsenic Thursday's reappraisal connected signs that ostentation is strengthening pursuing December's data, besides released connected ‌Friday.

They said MAS could rise its halfway ostentation forecast scope for 2026 by 50 ground points to 1% to 2%, from its existent forecast scope of 0.5% to 1.5%.

The economists noted the information showed terms increases of travel-related and different components much than offset a autumn successful earthy nutrient and beverage prices.

MAS volition update its ostentation forecasts successful Thursday's monetary argumentation statement.

Singapore manages monetary conditions by letting the section dollar emergence oregon autumn against the currencies of ⁠its main trading partners wrong an undisclosed trading band, known arsenic ​the Singapore dollar nominal effectual speech complaint (S$NEER).

It adjusts settings via 3 levers: ​the slope, mid-point and width of the band.

Major cardinal banks are expected to clasp rates dependable successful the adjacent term, though uncertainties astir the U.S. Federal Reserve's independency stay a fiscal ‍market concern.

The sharply-divided Federal Reserve ⁠cut involvement rates by 25 ground points astatine its December gathering but signalled that easing volition beryllium paused arsenic it awaited clarity connected the authorities of the occupation market, ostentation and the economy.