Bank of Korea to keep policy restrictive as inflation remains above target
Governor Shin Hyun Song cited energy costs and AI demand as inflation drivers, but declined to signal a decision for the October 22 policy review.
Singapore holds monetary policy steady, narrows inflation forecast
MAS left its exchange-rate settings unchanged after tightening in April and July, despite all 10 analysts in a pre-decision poll expecting another move.
The Monetary Authority of Singapore kept policy unchanged on October 14 and lowered the upper end of its core inflation forecast. It now projects core inflation of 1.5% to 2%, compared with its previous range of 1.5% to 2.5%.
MAS retained the pace at which its currency policy band appreciates, along with the band's width and midpoint. All 10 analysts surveyed before the decision had expected further tightening, which would allow the Singapore dollar to strengthen more to help curb imported inflation.
The central bank said the existing settings would let the Singapore Dollar Nominal Effective Exchange Rate strengthen, countering an expected near-term increase in imported inflation. It said this would support a gradual easing of inflation pressures in 2027.
MAS expects the economy to maintain firm growth over the coming quarters, then moderate as the artificial intelligence boom slows from its exceptional pace. The central bank also said it would keep monitoring economic developments and remained positioned to respond to risks to medium-term price stability.
Singapore conducts monetary policy through the exchange rate rather than primarily through interest rates. MAS raised the band's appreciation rate in April and July, with the July adjustment smaller. Neither move changed the band's width or midpoint.