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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

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Low Youjin

Low Youjin

Published Sat, Dec 20, 2025 · 07:00 AM
    • 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.

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    Outlook 2026Monetary PolicyeconomyMonetary Authority of Singapore

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