The Business Times
business-time-50
OUTLOOK 2026
·
SUBSCRIBERS

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

    Longest-serving chief minister Taib Mahmud’s legacy looms large over Sarawak as a family feud over his estate threatens to expose skeleton’s in the eastern state’s political closet.

    On the board but frozen out: The Taib family feud tearing Sarawak construction giant apart

    Electric vehicles and the changed dynamics of mainstream and luxury car segments mean Certificates of Entitlement should not be used to classify cars.

    Is it time to scrap COE categories for cars? 

    Thailand’s target is to export seven million tonnes of rice globally in 2026, but the Middle East war has turned the world topsy-turvy with supply disruptions, high oil prices and economic uncertainty.

    Thai and Vietnamese farmers may stop planting rice because of the Iran war. Here’s why

    Court documents showed the largest sum of money Benjamin Chung Hiang Wee took was from his uncle, an odd-job worker.

    Former manager with DBS Bank admits cheating 7 victims, including his uncle, of over S$1 million

    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