Singapore's MAS holds policy band as Q3 GDP grows 5.4%
Singapore's central bank kept the rate of appreciation of its policy band unchanged on 14 October 2026. Q3 GDP rose 5.4% year-on-year, led by tech sectors.
The story in focus
Singapore's Monetary Authority kept the rate of appreciation of its exchange-rate policy band unchanged on 14 October 2026, with no change to band width or centre. It cited firm near-term growth, Q3 GDP growth of 5.4% year-on-year, and core inflation it forecasts to ease from mid-2027.
- MAS maintained the rate of appreciation of the S$NEER policy band, leaving its width and centre unchanged.
- METI advance estimates put Q3 2026 GDP growth at 5.4% year-on-year and 1.1% quarter-on-quarter seasonally adjusted.
- MAS forecasts 2026 core inflation of 1.5–2.0% and CPI-All Items around 2.0%, with both at 1.5–2.5% in 2027.
Policy decision
The Monetary Authority of Singapore said on 14 October 2026 that it will maintain the rate of appreciation of the Singapore dollar nominal effective exchange rate policy band. The width of the band and the level at which it is centred will not change.
MAS said the appreciating band lets the currency continue to strengthen, leaning against an anticipated near-term rise in imported inflation. It added that it is positioned to respond to risks to medium-term price stability.
Growth and trade backdrop
Citing advance estimates from the Ministry of Energy, Trade and Industry, MAS said Singapore's GDP grew 5.4% year-on-year in Q3 2026 and 1.1% quarter-on-quarter on a seasonally adjusted basis. Technology-related sectors led growth.
MAS said economic activity among Singapore's major trading partners has stayed robust, with global AI-related investment sustaining industrial production and trade, particularly in the region. It expects global growth to remain resilient near term before moderating over 2027 as AI-driven growth eases in the second half.
Inflation outlook
MAS Core Inflation rose to 2.1% year-on-year in July–August from 1.5% in Q2, while food inflation increased to 2.2%. MAS projects core inflation to remain slightly elevated before easing more discernibly from mid-2027.
For 2026, MAS forecasts core inflation averaging 1.5–2.0% and CPI-All Items around 2.0%. For 2027, both are projected at 1.5–2.5%. The government's GDP forecasts for 2026 and 2027 will be announced by METI in November.
What did Singapore's central bank decide on monetary policy in October 2026?
MAS kept the rate of appreciation of its exchange-rate policy band unchanged, with no change to band width or centre, citing firm near-term growth and core inflation projected to ease from mid-2027.
Sources & further reading
Help keep the record accurate. Send a correction.
