Singapore has maintained its monetary policy unchanged for the third consecutive time, while simultaneously raising its inflation forecast, signaling that its next move could be a policy tightening.

The Monetary Authority of Singapore (MAS) announced on Thursday that it would keep the slope, width, and midpoint of its policy band unchanged. The central bank's primary policy tool is the exchange rate, not interest rates. A media survey showed that 19 out of 20 economists had anticipated this decision. The majority of economists indicated they expect the MAS to adopt a hawkish stance due to concerns over inflation.

Previously released December inflation data showed that the rise in consumer prices remained elevated for the third consecutive month. The MAS has raised its 2026 forecast for both core inflation and headline inflation to a range of 1%-2%, up from a previous projection of 0.5%-1.5%.