The Monetary Authority of Singapore (MAS) left its monetary settings unchanged on Oct. 14, surprising analysts who had expected a tightening. The central bank uses the Singapore dollar nominal effective exchange rate (S$NEER) rather than domestic interest rates because Singapore’s highly trade-dependent economy is particularly sensitive to import prices. The economy is projected to expand at a firm pace, while inflation is expected to ease from mid-2027. MAS previously tightened twice in April and July, according to the existing policy record. The S$NEER is managed within an undisclosed policy band whose slope, midpoint and width can be adjusted to influence the currency’s pace, level and volatility. MAS moved to quarterly policy announcements in 2024 to provide more timely assessments of economic conditions.