SINGAPORE – Singapore's central bank on Wednesday maintained its monetary policy settings, keeping the pace of appreciation of its policy band unchanged as inflation remains manageable.

The Monetary Authority of Singapore (MAS) said in a statement that it would also leave the width of the policy band and the level at which it is centered unchanged.

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The current policy stance would allow the Singapore dollar nominal effective exchange rate to continue strengthening to counter imported inflation, helping to ease inflationary pressures gradually in 2027, MAS said.

According to the bank, the economy is expected to expand at a firm pace in the coming quarters before moderating as the artificial intelligence cycle loses momentum and global financial conditions tighten.

Core inflation is projected to ease noticeably from mid-2027 as supply-driven imported inflation slows and domestic cost pressures remain subdued.