Singapore's Monetary Policy May Remain Unchanged Amid Short-Term US-Iran Conflict, Analysts Say

On March 30, analysts from Fitch's BMI unit indicated that the Monetary Authority of Singapore's policy response could keep both overall and core inflation rates at an average of 1.8% in 2026. According to Jin10, the analysts expect that if the US-Iran conflict is brief, the Monetary Authority of Singapore will maintain its policy settings unchanged in 2026. However, they believe that if the conflict extends beyond March, the risk of policy tightening in April will increase. Should the Monetary Authority of Singapore tighten its policy, the Singapore dollar exchange rate could be stronger than BMI's current forecast of 1 USD to 1.28 SGD by the end of 2026.