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MAS tightens SGD NEER slope to 1.25%, HSBC expects more in October

HSBC says the July 27 surprise move follows an April tightening, and it forecasts the slope could reach 1.50% after another October adjustment.

Reported · Written up by our desk · Major Pairs

HSBC analysts say the Monetary Authority of Singapore (MAS) unexpectedly tightened its policy on July 27, 2026 by raising the Singapore Dollar (SGD) Nominal Effective Exchange Rate (NEER) slope to 1.25%. The move represents a small increase, after a policy tightening in April.

HSBC’s Abhilash Narayan links the decision to stronger Singapore growth prospects. The analyst upgraded the 2026 GDP growth forecast to 4.6%, citing AI related tailwinds plus resilience in construction and services.

Looking ahead, HSBC expects another MAS tightening in October. In that scenario, it anticipates the SGD NEER slope would move up to 1.50%.

The note also says HSBC maintains an overweight stance on Singapore equities, pointing to their quality and defensive characteristics, supported by solid fundamentals and an attractive dividend yield.

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