Singapore Holds Policy, With AI Boom to Support Export Demand

Singapore left its monetary policy settings unchanged for a third straight review while raising its forecast for inflation, with the trade-dependent economy set to continue benefiting from artificial intelligence-related demand for chips and other technology.

The Monetary Authority of Singapore, which uses the exchange rate as its main policy tool rather than interest rates, said Thursday it would keep the slope, width and center of its policy band unchanged. Nineteen of 20 economists in a Bloomberg survey predicted the decision. The majority said they expected the MAS to add a hawkish bias on inflation concerns.