Singapore is widely expected to keep its monetary policy unchanged at a review scheduled for January 29, with economic growth supported by robust semiconductor exports and inflation remaining well within manageable levels, Reuters reports.

A Reuters poll of 16 analysts found that 15 expect the Monetary Authority of Singapore (MAS) to maintain its current policy stance. MAS last left policy settings unchanged in July and October 2025, following earlier easing moves in January and April.

Singapore’s economy expanded by 4.8% in 2025, exceeding the government’s November forecast of about 4.0% and well above its earlier projection of 1.5% to 2.5% growth, as reported by Reuters.

Momentum in the technology sector has also remained strong. Singapore’s electronics purchasing managers’ index registered 50.9 in December, signalling continued expansion, according to Tay Qi Hang, Asia analyst at the Economist Intelligence Unit. He noted that rising demand linked to artificial intelligence and higher memory chip prices should continue to support the semiconductor industry in the months ahead.

He added that stronger-than-expected growth in the fourth quarter of 2025, combined with core inflation hovering just above 1% in November, has eased near-term pressure on MAS to loosen policy further.

Edward Lee, chief economist at Standard Chartered, said there was no immediate need for policy action given that inflation remains under control. However, he expects MAS to tighten policy at its April review, as inflation bottoms out and trade-related uncertainties begin to subside.

In contrast, Bank of America economists said in a report on January 23 that MAS could tighten policy as early as this week’s review, citing signs of strengthening inflation following December data. They suggested MAS may raise its 2026 core inflation forecast by 50 basis points, to a range of 1% to 2%, from the current 0.5% to 1.5%.

The economists pointed out that increases in travel-related and other price components more than offset declines in raw food and beverage prices. MAS is due to update its inflation outlook in January 29’s policy statement.

Singapore conducts monetary policy by allowing the Singapore dollar nominal effective exchange rate (S$NEER) to move within an undisclosed policy band against the currencies of its main trading partners. Policy adjustments are made by changing the slope, midpoint, or width of this band.

Globally, most major central banks are expected to keep interest rates steady in the near term, although market participants remain cautious about uncertainty surrounding the independence of the US Federal Reserve. The Fed cut rates by 25 basis points in December but signalled a pause in easing as it awaits clearer signals on employment, inflation, and overall economic conditions. US President Donald Trump has repeatedly criticised Fed Chair Jerome Powell for not cutting rates more aggressively.