SINGAPORE, Oct. 14 (Xinhua) -- Singapore's central bank on Tuesday left its monetary policy settings unchanged, maintaining the pace of the local currency's trade-weighted appreciation, as the economy continues to show resilience despite global trade headwinds from U.S. tariffs.
In its monetary policy statement, the Monetary Authority of Singapore (MAS) said it would keep the prevailing rate of appreciation of the Singapore dollar nominal effective exchange rate (S$NEER) policy band. The width of the band and the level at which it is centered also remain unchanged.
The MAS, which has eased monetary policy twice this year, noted that economic growth has been stronger than expected. It said the output gap will remain positive in 2025 and hover around zero next year. Core inflation is expected to bottom out in the near term and gradually rise over 2026 as temporary factors dampening price pressures fade.
The bank said the staggered implementation of U.S. tariffs has fueled front-loading of shipments worldwide, while robust AI-related investments have buoyed manufacturing and trade among Singapore's key partners.
"In the quarters ahead, global growth should moderate as front-loading activity dissipates while labor markets soften and spending slows," the MAS said. "However, the extent of the downturn should be contained. International production networks have demonstrated some flexibility in adapting to tariffs, while global financial conditions remain accommodative and supportive of investment, including in the IT sector."
