Prime Highlights:

• MAS continues with its present monetary policy stance unchanged for July 2025.
• Sinking global trade tensions and picking up economic growth drive the move.

Key Facts:

• Singapore’s GDP in Q2 grew 1.4% quarter-on-quarter, and recession was thus avoided.
• Core inflation softened to 0.6% year-on-year in June, from 5.5% in the early part of 2023.

Key Background:

Singapore Monetary Authority (MAS) chose to maintain its monetary policy unchanged on July 30, 2025, without adjusting its current exchange-rate-based system. The move is the latest in two rounds of previous easing this year as policymakers thought that its current stance is adequate when it comes to offering flexibility to price stability and also to support economic growth.

Singapore’s economy surprised everyone by showing resilience in the second quarter when it posted a 1.4% quarter-on-quarter increase in GDP, halting the country from sliding into a technical recession. A better global trade environment and reduced geopolitical tensions also contributed to support external relief so that MAS could stay firm without additional easing actions.

Core inflation also eased further to 0.6% year-on-year in June, far from its 5.5% all-time high in the first quarter of 2023, as it is dragged down by comparatively low import prices and subdued domestic demand. The easing of price pressures has made MAS stronger in endeavoring to pursue stability while it observes shifts in global economic trends.

MAS warned, however, that there are still risks in the second half of 2025. The growth will slow as the initial boost from export demand fades, and persistent global economic uncertainty and evolving trade policy risk in 2026. Economists are split on future action in policy with some calling for more easing should the outlook worsen while others expect a protracted period of holding to conserve policy space.

Analysts say that MAS is taking a guarded approach, supporting growth while damping inflation. The move by the central bank is a sign of confidence in Singapore’s short-term resilience and willing to act if the economic conditions pick up once more.

Read More : Singapore Rolls Out EDP & EDP+ Tools to Phase Out Corporate Cheques by 2026