Singapore Monetary Authority Expected to Maintain Policy Amid US Tariff Risks

Singapore's Monetary Authority (MAS) is poised to maintain its current monetary policy stance amid ongoing uncertainties from U.S. tariffs impacting global trade and economic growth. While MAS has eased monetary policy twice in 2025 by reducing the slope of the Singapore dollar nominal effective exchange rate (S$NEER) band to support export-dependent sectors, recent data showing resilient economic growth and low inflation have led the majority of economists to expect no further easing in the near term. The central bank's approach balances cushioning trade-exposed sectors such as electronics, chemicals, and logistics from currency appreciation against the risks of reigniting inflation or sharper trade shocks. Nevertheless, some analysts and financial institutions, including Goldman Sachs and Bank of America, continue to advocate for additional easing. MAS’s unique policy framework, which manages monetary conditions via exchange rate adjustments rather than interest rates, remains focused on price stability while adapting to the evolving global trade environment. This nuanced monetary strategy creates a complex investment landscape where resilience and adaptability are key for trade-exposed equities and currency strategies.