Singapore’s central bank kept its monetary policy unchanged on Tuesday, citing stronger-than-expected economic growth despite renewed risks from President Donald Trump’s escalating global trade war.
The Monetary Authority of Singapore (MAS), which manages policy through the exchange rate rather than interest rates, said it would maintain the slope, width and centre of its policy band. The decision was widely expected, with 16 out of 20 economists surveyed by Bloomberg forecasting no change, while the rest anticipated further easing.
Singapore’s economy expanded by 2.9% year-on-year in the third quarter, preliminary data from the Ministry of Trade and Industry showed. That outpaced the 2% growth predicted in a Bloomberg survey, with the ministry pointing to strong performances in construction and services as key drivers of the rebound.
The MAS has already eased its policy twice this year, in January and April, to support economic growth, before maintaining a steady stance in July. Its latest decision reflects confidence in the economy’s resilience, despite ongoing trade tensions and inflation risks that continue to cast a shadow over the outlook.
Elsewhere in the region, central banks in Thailand, Indonesia and New Zealand have surprised markets in recent weeks by easing at varying speeds to counter the fallout from Trump’s tariffs. The US Federal Reserve also cut borrowing costs last month for the first time since December.
Global markets remain unsettled after fresh trade frictions erupted between Washington and Beijing over the past week. China recently announced new export controls on critical minerals, prompting the US to retaliate with plans to double tariffs on Chinese goods to 100%, alongside sweeping restrictions on “any and all critical software.”
The MAS, which reviews policy four times a year, said it will continue to monitor developments closely as global trade uncertainty weighs on the region’s recovery momentum.
Bloomberg
