Singapore's central bank tightens policy for the second time in three months in a surprise move

The Monetary Authority of Singapore (MAS) tightened its monetary policy on Monday 27 July 2026 (5 Mordad 1405), against the expectations of most analysts. The authority said it would raise the slope of the Singapore dollar nominal effective exchange rate policy band "very slightly", a smaller move than its April action and its second tightening in three months.

According to a Bloomberg survey, 13 of the 18 participating analysts expected no change, 4 expected a steepening of the band and one predicted a re-centring. MAS attributed the decision to external costs still filtering through to consumer prices and to its forecast that core inflation would pick up from July and stay elevated into early 2027, citing volatility in global energy markets following the US war against Iran.

The decision is an example of how the regional energy shock is feeding into monetary policy at energy importing Asian economies.