RHB Bank has announced that it will maintain its 2025 full-year headline and core inflation forecasts for Singapore at 1.6% and 1.1%, respectively. This decision comes despite a recent easing in inflationary pressures within the city-state. The bank’s Group Chief Economist and Head of Market Research, Barnabas Gan, highlighted that the Monetary Authority of Singapore (MAS) is likely to retain its current policy stance during the upcoming July Monetary Policy Committee meeting.
Singapore’s headline Consumer Price Index (CPI) eased to 0.8% year-on-year, aligning with both Bloomberg consensus and RHB’s projections. Meanwhile, the core CPI saw a slight decrease, ticking down to 0.6% year-on-year from a 0.7% rise in April. These figures suggest a stabilisation in inflation, yet uncertainties in the global economic outlook persist.
Gan noted that rising volatility might prompt MAS to consider widening its policy band to ±3.0% from the current ±2.0%, whilst maintaining a +0.5% appreciation slope in the second half of 2025. This approach aims to provide flexibility in response to potential economic shifts.
The report underscores the cautious stance taken by RHB Bank amidst ongoing global economic challenges, reflecting a broader trend of vigilance in monetary policy as economies navigate post-pandemic recovery. As the situation evolves, the bank’s forecasts and MAS’s policy decisions will be closely monitored for any adjustments.
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