SINGAPORE, Oct 14 — The Monetary Authority of Singapore (MAS) will maintain the prevailing rate of appreciation of the Singapore dollar nominal effective exchange rate (S$NEER) policy band, according to its latest Monetary Policy Statement released today.

“There will be no change to its width and the level at which it is centred,” the republic’s central bank said.

MAS’ monetary policy framework is centred on managing the Singapore dollar against a trade-weighted basket of currencies, also known as the S$NEER.

The central bank, which has eased monetary policy twice this year, said it remains appropriately positioned to respond effectively to any risks to medium-term price stability and will continue to closely monitor economic developments amid uncertainties in the external environment.

According to MAS, Singapore’s economic growth has turned out stronger than expected, and the output gap will remain positive in 2025 and is expected to come in around zero per cent next year.

It added that core inflation, which excludes accommodation and private transport costs, is expected to trough in the near term and rise gradually over the course of 2026 as temporary factors dampening inflation fade.

Meanwhile, advance estimates from the Ministry of Trade and Industry (MTI) released today showed that the Singapore economy grew by 2.9 per cent year-on-year in the third quarter of 2025 (Q3 2025), moderating from the 4.5 per cent growth recorded in the previous quarter.

On a quarter-on-quarter seasonally adjusted basis, the economy expanded by 1.3 per cent in Q3 2025, only slightly slower than the 1.5 per cent recorded in the preceding quarter.

MAS said Singapore’s GDP growth is expected to moderate from this above-trend pace in the coming quarters as activity normalises in the trade-related sectors.

The central bank noted that uncertainty around the economic outlook has receded somewhat following the conclusion of several trade deals between the United States and various countries.

“MAS is monitoring closely the actual implementation of the tariffs, and the risks of renewed trade conflict and disruption,” it added. — Bernama