Economists Predict Easing Only in 2025 as Growth Remains Strong
Singapore’s central bank is expected to maintain its current monetary policy stance until early 2025, after leaving it unchanged for the fifth consecutive meeting during the July review.
On July 26, the Monetary Authority of Singapore (MAS) announced that it will maintain the prevailing rate of appreciation of the Singapore nominal effective exchange rate (S$NEER) policy band, with no adjustments to its width or level.
MAS also projected gross domestic product (GDP) growth to range between 2 to 3 per cent for the full year, aligning with the upper end of the Ministry of Trade and Industry’s official 1 to 3 per cent forecast.
Key Takeaways:
🔹 Steady Monetary Policy: MAS kept its policy settings unchanged, reflecting confidence in Singapore’s economic stability.
🔹 Stronger Growth Outlook: The central bank anticipates GDP growth closer to its potential rate, suggesting resilience despite global uncertainties.
🔹 Inflation Adjustments: Following MAS’ statement, DBS revised its headline and core inflation forecasts downward.
Economists believe that unless inflation pressures ease significantly, MAS will likely maintain its stance until 2025, ensuring a stable economic environment amid global fluctuations.
