MAS Tightens Monetary Policy Again, Yen Recovers Against Singdollar

Singapore's Monetary Authority (MAS) has announced that it will allow the Singdollar to appreciate at a slightly faster pace to curb inflation. This move marks the second consecutive monetary policy tightening since April, with MAS expecting higher global energy and food prices to feed into consumer prices domestically.

The core inflation rate in Singapore rose to 1.5% in the second quarter of 2026, from 1.2% earlier this year, driven by increases in the cost of point-to-point transport and uncooked food alongside surging fuel prices. The MAS noted that its April tightening had helped curb inflation, but warned that price pressures could rise if energy prices spike again.

The yen has also recovered against the Singdollar, with a Singapore dollar buying 122.78 yen on August 2. International media reports suggest that Japanese authorities may have intervened to support the currency by buying billions of yen in the market.