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Singapore tightens MAS policy again, keeping USD/SGD under pressure

MAS raised the rate of appreciation for the SGD NEER band slightly for a second straight meeting, and left the band’s center and width unchanged.

Reported · Written up by our desk · Major Pairs

Commerzbank analysts said the Monetary Authority of Singapore unexpectedly tightened policy for a second straight meeting, increasing the SGD Nominal Effective Exchange Rate (NEER) policy band’s appreciation slope while leaving the band’s center and width unchanged.

They noted the decision points to greater concern about upside inflation risks despite data described as benign and softer energy prices, with USD/SGD dipping modestly after the announcement.

After the move, USD/SGD fell toward 1.2890, compared with around 1.2910 earlier, according to the report.

Commerzbank added that MAS signaled a smaller tightening than the action taken in April, and maintained headline and core inflation forecasts at 1.5% to 2.5% for 2026, with growth running stronger-than-expected at 6% in H1 2026.

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