MAS holds policy unchanged and trims its inflation view as the economy grows 5.4 per cent in the third quarter
Singapore’s GDP grew 5.4 per cent in the third quarter, beating forecasts (Straits Times, Business Times, CNBC, Nikkei Asia, Investing.com). On a seasonally adjusted basis it expanded 1.1 per cent from the previous quarter (Straits Times). CNBC said growth softened from a four-year high, and the Business Times and Nikkei tied the strength to electronics and AI-driven demand. The Monetary Authority of Singapore kept its policy unchanged after tightening twice this year (CNA, AsiaOne), which the Edge Singapore called unexpected. MAS narrowed its core inflation forecast to 1.5 to 2 per cent from 1.5 to 2.5 per cent, and warned that inflation is elevated (CNA, Straits Times). It said AI-led growth should continue into 2027, with the boost expected to moderate (CNA, Business Times). Singapore shares edged lower after the decision (Business Times).
MAS manages the Singdollar rather than setting an interest rate, so its decisions shape import prices and the cost of living. A hold after two tightenings suggests MAS sees less need to tighten, but it still calls inflation elevated.
With the Singdollar’s path unchanged, MAS is not adding to imported-price pressure through policy, though it still calls inflation elevated.
MAS cut the top of its core inflation range while growth stays strong, so there was less need to tighten again.
The Edge Singapore and MUFG called the hold unexpected, and MUFG reads it as the start of an extended pause rather than a one-off (FXStreet).
The decision is a bet that inflation is cooling while AI-driven growth remains strong. Watch the next inflation print and whether the US inflation surge changes MAS’s view before its next review.
DailyDrop Singapore edition No. 11 · Morning · THU., OCT. 15, 2026