The Business Times
business-time-50
OUTLOOK 2026

MAS has breathing room to react to sudden shocks in 2026: economists

Tariffs, fading AI chip demand or a sharper-than-forecast global slowdown could prompt looser policy – but tightening is possible too

Summarise
google-preferred-sourceAdd BT as a preferred source
Low Youjin

Low Youjin

Published Sat, Dec 20, 2025 · 07:00 AM
阅读简体中文版 (beta)
    • Current settings put the S$NEER policy band on “a modest and gradual appreciation path”.
    • Current settings put the S$NEER policy band on “a modest and gradual appreciation path”. GRAPHIC: TEOH YI CHIE

    [SINGAPORE] Low inflation should give the Monetary Authority of Singapore (MAS) breathing room to loosen policy in 2026 if growth is unexpectedly hit, said economists.

    Yet, resilient growth also means tighter policy is not off the table.

    The baseline expectation is for MAS to hold policy steady throughout 2026, after two slight easings in early 2025.

    Outlook 2026Monetary PolicyeconomyMonetary Authority of Singapore

    TRENDING NOW

    Parliament is slated to debate proposed changes to political salaries, including those of ministers, when it sits this week.

    Watch live: PM Wong, Chan Chun Sing to address political office-holders’ salary review in Parliament

    The Vietnam International Financial Centre is being developed as “one centre, two destinations” across Da Nang (left) and Ho Chi Minh City.

    Vietnam pitches its real economy, not a Singapore replica, in two-city IFC push

    Taste Orchard was a five-storey concept store operated by Hao Mart at the OG Orchard Point building in Somerset.

    Lawsuit from ex-advisers adds to claims arising from Hao Mart’s lease of Taste Orchard

    Canadian Prime Minister Mark Carney speaking at a press conference in Ottawa, on Aug 22, after trade talks with the US collapsed.

    Canada’s fight with the US has far bigger stakes than trade

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More