Singapore tightens monetary policy to curb inflation risks

SINGAPORE, (UrduPoint / Pakistan Point News / WAM - 28th Jul, 2026) The Monetary Authority of Singapore (MAS) announced on Monday a slight tightening of its monetary policy by increasing the rate of appreciation of the Singapore Dollar nominal effective exchange rate policy band, citing persistent medium-term inflation risks.

Media reports quoted the MAS as saying that improving growth prospects and the build-up of medium-term inflationary pressures warrant further monetary tightening, despite recent inflation data remaining at moderate levels.

The authority said the latest increase in the rate of appreciation of the exchange rate policy band was smaller than the adjustment made at its April meeting, while the width of the band and the level at which it is centred were left unchanged.

On the economic front, preliminary estimates released by Singapore's Ministry of Trade and Industry showed that the country's gross domestic product grew by 5.7 percent year-on-year in the second quarter of 2026.

Gross domestic product also expanded by 1.1 percent on a seasonally adjusted quarter-on-quarter basis, following revised growth of 1.3 percent in the first quarter.