Forex
Home›Forex›Major Pairs›Singapore Dollar faces pressure after MAS tightens pol…
Singapore Dollar faces pressure after MAS tightens policy again
MAS tightened for a second straight meeting by increasing the SGD NEER policy band’s appreciation slope, while the band’s center and width were left unchanged.
Commerzbank analysts say the Monetary Authority of Singapore (MAS) unexpectedly tightened policy for a second straight meeting, keeping the SGD Nominal Effective Exchange Rate (NEER) band’s center and width unchanged but slightly raising the band’s appreciation slope.
The tightening, despite benign data and softer energy prices, indicates MAS is placing more weight on upside inflation risks. Following the announcement, USD/SGD dipped modestly toward 1.2890 after earlier trading around 1.2910.
Commerzbank notes MAS characterized the latest increase as smaller than the tightening done in April and that the move may lead to an up revision to MAS’s official forecast currently at 2% to 4%. MAS also held its headline and core inflation forecasts for 2026 at 1.5% to 2.5%.
The analysts also pointed to stronger-than-expected growth of 6% in the first half of 2026, alongside MAS’s decision to act, suggesting concern about inflation outweighs downside growth risk in the near term.