DBS: Singapore's Monetary Authority Expected to Maintain Status Quo Next Year

In a report, Chua Han Teng, Senior Economist at DBS Group, stated that the Monetary Authority of Singapore is expected to maintain its current stance next year to preserve flexibility in an uncertain global environment. Singapore's highly globalized economy is facing profound global shifts such as increasing fragmentation of geopolitical economies, rapid technological advancements, and climate change. Chua pointed out that these trends are expected to continue into next year. The current policy of the Singaporean Monetary Authority is aligned with a narrow 0% output gap and gradually rising inflation. The output gap is a measure of whether a country's economy is close to operating at its full capacity.