Fitch: Monetary policies by the Singapore Monetary Authority are expected to keep the inflation rate at around 1.8%.

Analysts from the research firm BMI under Fitch Solutions stated that the monetary policy measures implemented by the Monetary Authority of Singapore (MAS) may keep overall inflation and core inflation around an average of 1.8% in 2026. These analysts predict that assuming the conflict between the US and Iran is short-lived, MAS will maintain its policy stance unchanged in 2026. However, they believe that if the conflict persists beyond March, there will be a higher risk of MAS tightening its policy in April. If MAS tightens its policy, by the end of 2026, the Singapore dollar's exchange rate may be stronger than the level of 1.28 against the US dollar, as currently predicted by BMI. According to data from the London Stock Exchange Group, the US dollar has declined by 0.1%, trading at 1.29 Singapore dollars. MAS uses the exchange rate as its policy tool because trade flows far exceed the country's domestic economic activity.