Economists Divided On Whether MAS Will Ease Again After Growth Surprise

A Reuters survey reveals economists are evenly split on whether Singapore’s central bank will ease policy after stronger-than-expected Q2 economic data, ahead of its next policy review.

Analyst Sentiment Split
Of 12 surveyed economists, six expect another policy easing, while the other half foresee a hold. Growth ahead of expectations and falling trade friction complicate forecasts.

Growth Frontloading and Risks
Q2 expansion largely reflects export frontloading ahead of U.S. tariffs. Economists warn this boost may fade in H2, raising potential output slack and influencing policy decisions.

Easing Tools And Timing
MAS policy tools include thoughtful adjustments to S$NEER slope and midpoint. Some analysts report MAS is likely to flatten the slope modestly rather than enact broad cuts.

Financial and Investor Implications
Banks, investors, and corporates should prepare for conditional tightening or further ease depending on trajectory. Liquidity planning and FX exposure remain key for treasury teams.

Editor’s Note
The policy outlook hinges on careful signal reading. MAS’s next moves will matter more than rhetoric: flexibility without haste.

Tags
MAS easing debate, economist survey, Singapore economic growth, central bank outlook