SINGAPORE, April 14 (Reuters) – Singapore’s central bank tightened its monetary policy settings on Tuesday, in line with what most analysts polled L6N40P00M by Reuters had expected, as it forecast core inflation to pick up and remain elevated over coming quarters.
The Monetary Authority of Singapore (MAS) said it would increase slightly the rate of appreciation of the S$NEER policy band. It said there would be no change to its width and the level at which it is centred.
“GDP growth in 2026 as a whole is likely to step down from the above-trend pace of growth recorded in 2025. Concomitantly, the positive output gap will narrow,” the MAS said.
Of the 13 analysts polled by Reuters ahead of the review, 11 expected the MAS to tighten policy and two forecast no change.
The analysts that expected a tightening had cited how the Middle East war has driven up energy prices and inflation risks, and darkened the growth outlook at home and abroad.
The MAS held policy steady L1N3YU005 at its previous three meetings in January, October and July. It had eased policy last April.
The decision came at the same time as preliminary government data showed the economy grew 4.6% P8N3YD039 in the first quarter of 2026, weaker than market expectations.
On a quarter-on-quarter seasonally adjusted basis, GDP contracted 0.3% from the fourth quarter of 2025, according to the advance estimates.
Data last month showed core inflation was 1.4% y/y in February P8N3TX068, before the war in the Middle East began. Inflation data for March is due next week.
(Reporting by Xinghui Kok and Jun Yuan Yong; Editing by John Mair)
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