Singapore to keep policy steady as inflation cools
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Singapore’s central bank is likely to hold monetary policy steady this week, citing low inflation and ongoing US trade uncertainties, while domestic growth remains stable. A recent survey revealed that 16 out of 20 economists anticipate the Monetary Authority of Singapore (MAS) will maintain its current policy settings. On the other hand, four economists, including some from DBS Group Holdings Ltd. and TD Securities, speculate that the bank might begin easing its policy again after maintaining it unchanged during its final review in July. Central banks adopt different strategies to support their country’s economic growth The MAS carefully reviews its policy four times annually. In January and April, the agency loosened its policy setting to support the country’s uncertain economic status, as it encountered slowdowns and risks that required cautious navigation. Unlike most central banks, which prefer adjusting interest rates in the event of growing uncertainties, Singapore’s central bank’s main aim is to stabilize prices by controlling the rise of its dollar based on trade. This act follows the central banks’ new decision to adopt different operational strategies. To support this claim, reliable sources report that Indonesia and New Zealand are further reducing their interest rates to enhance the countries’ economic growth. At the same time, Thailand, Malaysia, and Australia keep their rates steady as they thoroughly examine the impacts of previous changes. The US Federal Reserve, on the other hand, had earlier lowered borrowing costs for the first time since December last year. Concerning the situation, Lloyd Chan, a Senior Currency Analyst at MUFG’s Global Markets Research in Singapore, commented that the central bank appears to be holding off on any additional action until it identifies any signs of economic decline. Escalating trade tensions between the US and China also shape Singapore’s policy outlook. The US-China trade conflict has escalated as…
Filed under: News - @ October 13, 2025 12:24 am