The Monetary Authority of Singapore (MAS) has kept its monetary policy settings unchanged, in line with market expectations, while cautioning that robust economic growth could fuel inflationary pressures in the months ahead. Analysts had widely anticipated a policy hold, noting that while growth momentum has strengthened, inflation remains relatively contained for now. However, MAS emphasized that risks to both growth and inflation are now skewed to the upside. MAS’s exchange rate-based monetary policy framework focuses on managing the S$NEER rather than interest rates, making the policy band a key tool for controlling imported inflation and ensuring price stability. If growth continues to surprise on the upside and feeds into higher inflation, MAS may consider policy adjustments to safeguard medium-term price stability.