Singapore tightened monetary policy on Monday for the second time in three months, as the fallout from the US war against Iran keeps global energy markets volatile and inflation risks elevated.
The Monetary Authority of Singapore (MAS) said it would increase the rate of appreciation of the local dollar’s trade-weighted value.
The move comes as oil prices remain elevated owing to tensions in the Middle East, sparked by the US-Israel attacks on Iran that began on February 28, and continue to cast a shadow.
Because the city-state imports most of its needs, higher global prices for food and energy directly drive up local living costs.
Unlike many central banks, the MAS manages inflation by adjusting the Singapore dollar against a basket of currencies of its main trading partners within an undisclosed band, rather than setting interest rates.
A strong Singapore dollar eases the effects of rising import costs.
“Singapore’s imported costs are likely to rise in the quarters ahead,” the MAS said, adding that core inflation “is forecast to step up in July and remain elevated into early next year.”
It warned that “inflation could pick up more strongly than anticipated if energy prices spike anew” as “fuel reserves have been drawn down significantly and renewed supply disruptions in the Middle East could cause sharp surges in oil prices”.
The MAS last tightened monetary policy in April, the first such move since 2022.
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29 July, 2026 
