MAS keeps monetary policy on hold after tightening twice this year

{"#MAS's Monetary Policy":"MAS's monetary policy is managed through the exchange rate, allowing the Singapore dollar to strengthen or weaken within an undisclosed band. The band's slope, mid-point, and width can be adjusted to make policy changes. In April and July, MAS increased the rate of appreciation of the policy band, with the second increase being smaller than the first. The width of the policy band and the level at which it is centred were left unchanged both times. MAS noted that the S$NEER has strengthened modestly in the upper half of the appreciating policy band since July.","Supply-Driven Imported Inflation":"MAS expects supply-driven imported inflation to slow and domestic costs to remain muted over 2027. Supply disruptions to energy and food commodities should gradually ease, while unit labour cost increases in the services sectors should be contained due to productivity gains. Enhancements to government subsidies for healthcare and education will also keep services inflation low over 2027.","Core Inflation Forecast":"MAS narrowed the core inflation forecast to 1.5 to 2% from 1.5 to 2.5%. The central bank said core inflation is expected to remain slightly elevated in the immediate quarters before easing. Higher import costs passed through to a broader range of goods and services."}