eToro market analyst Josh Gilbert noted in an email that the Monetary Authority of Singapore (MAS) may ease monetary policy as the July Consumer Price Index (CPI) continued the inflation cooling trend.

Core inflation rose 0.5% month-on-month in July, down from 0.6% in June. Gilbert believes that given the moderating core inflation and potential economic growth slowdown in the second half of the year, further policy easing by MAS in October "seems like the right move."

Previously, MAS chose to maintain policy unchanged at its July meeting, likely waiting for more evidence before making adjustments.

Gilbert stated: "The current policy discussion has shifted from controlling inflation to supporting economic growth."