MAS keeps monetary policy steady, flags slowdown in second half
According to Julius Baer’s 2025 global richness and lifestyle report, Singapore maintains its title as the most expensive city for highly clear valuable individuals.
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On Wednesday, the Central Bank of Singapore warned that the city state’s economy would be moderate in the second half of 2025. [the first half]”Because it hasn’t changed its monetary policy.
Singapore’s money authority, the policy group will keep the width and level of trade concerns from the Trump administration.
“In particular, trade sectors should withdraw a little,” the Central Bank monetary policy statement. He said.
“Expectations for the Singapore economy are subject to significant uncertainty, especially in 2026. Changes in the worldwide effective tariff rates may affect the performance of Singapore’s external sectors.”
MAS said that financial volatility and geopolitical shocks could deepen the effect of global slowdown and add pressure on Singapore’s growth view.
Singapore’s export -dependent economy escaped from a technical recession in the second quarter, expanded in 1.4% in the quarter of the growth quarter, and challenged a 0.5% contraction expectation.
Compared to last year, Singapore’s GDP increased by 4.3% in the second quarter, accelerated 4.1% in the first three months and exceeded expectations.
Unlike most countries, Singapore does not use interest rates to manage monetary policy, but instead strengthens or weakens the Singapore dollar against a basket of main trade partners in a policy group.
The exact exchange rate is not determined; Instead, SGD can move in the set policy band whose exact levels are not disclosed.
The Movement comes after the central bank’s monetary policy in 2025 two times earlier and now said that “responding to medium -term price stability risks is in an appropriate position.”
Oxford economy economist Sheana Yue said that MAS’s decision was probably due to strong GDP performance in Singapore’s first half of the year.
However, YUE also pointed out the language of a “appropriate position”, which claims that the Central Bank is open to adjusting its policy in the future as the US tariffs bite.
Yue added that Singapore’s open and trade -dependent economy made it vulnerable to higher global trade barriers and that the growth momentum can be softened in the rest of the year.
Singapore economy is largely dependent on exports and creates exports 178.8% of the GDP of the city state According to the World Bank in 2024.
“It is not clear whether Singapore can make an agreement, but instead can enter into a parenthesis of 10% and 15%. Smaller economies“Oxford Economics’ said Sheana Yue.
On Tuesday, Singapore Deputy Prime Minister Gan Kim Yong It has been reported that the US, Singapore’s tariff level for the importation of the United States will not be able to stay at 10% “committed to” committed “, he said.
Gan was in the United States between 20-26 July and said that “the US is not in the air to discuss any discount on the base line tariff.”
Singapore, despite the fact that he carried out a trade deficit with the United States and made a free trade agreement since 2004, was shot with 10% tax.
The city-state did not receive a “tariff letter”, nor did US President Donald Trump have received a trade agreement with the United States since the so-called “Liberation Day” tariffs on April 2.
