Inflation expectations remain stable, and institutions are optimistic about the Monetary Authority of Singapore’s ability to handle geopolitical shocks

Golden Ten Data reported on March 30 that analysts from Fitch's subsidiary BMI indicated that the Monetary Authority of Singapore's policy response could keep both overall and core inflation rates at an average of around 1.8% in 2026. The analysts expect that, assuming the US-Iran conflict is short-lived, the Monetary Authority of Singapore will maintain current policy settings in 2026. However, they believe if the conflict continues beyond March, the risk of policy tightening by the Monetary Authority of Singapore in April (UTC+8) will increase. If the Monetary Authority of Singapore tightens policy, the Singapore dollar exchange rate may be stronger than BMI's current forecast of 1 US dollar to 1.28 Singapore dollars by the end of 2026.