---
title: "MAS holds monetary policy steady amidst elevated inflation"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/301783538.md"
description: "The Monetary Authority of Singapore (MAS) maintained its monetary policy unchanged in October, keeping the Singapore dollar's appreciation path to counter elevated imported inflation. Core inflation rose to 2.1% in July and August due to higher import costs. MAS expects price pressures to ease noticeably from mid-2027, with core inflation projected to average 1.5% to 2% in 2026 and headline inflation around 2%."
datetime: "2026-10-14T03:33:59.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/301783538.md)
  - [en](https://longbridge.com/en/news/301783538.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/301783538.md)
generator: "portal-rs"
---

# MAS holds monetary policy steady amidst elevated inflation

**Price pressures are expected to ease more noticeably from mid-2027.** 

The Monetary Authority of Singapore (MAS) kept its monetary policy unchanged in October, maintaining the Singapore dollar's appreciation path as inflation is expected to remain elevated in the coming months.

“The current appreciating policy band will allow the S$NEER to continue to strengthen and lean against the anticipated near-term rise in imported inflation,” MAS said on 14 October.

“Inflation is expected to moderate over 2027 as import costs ebb and domestic price pressures stay subdued,” it added.

The decision follows a slight increase in the appreciation rate in July, after which the Singapore dollar strengthened modestly within the upper half of the policy band.

Core inflation rose to 2.1% year-on-year in July and August, from 1.5% in the second quarter, as higher import costs were passed on to a broader range of goods and services.

Food inflation also increased to 2.2% from 1.9%, whilst electricity and gas tariffs rose and inflation in fuel-intensive transport services remained high.

Meanwhile, the authority expects core inflation to average 1.5% to 2% in 2026. Headline inflation is projected at around 2%. 

Both measures are forecast to average 1.5% to 2.5% next year.

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---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**