RHB Bank has announced a downward revision of Singapore’s inflation forecast for 2025, citing easing inflationary pressures. The bank now predicts the full-year headline inflation to be 1.2%, down from the previous forecast of 1.6%, and core inflation to be 0.9%, revised from 1.1%. This adjustment comes as the Monetary Authority of Singapore (MAS) is expected to widen the Singapore Dollar Nominal Effective Exchange Rate (S$NEER) policy band from ±2.0% to ±3.0% in its upcoming meeting.
The announcement follows the latest data showing Singapore’s headline Consumer Price Index (CPI) remained steady at 0.8% year-on-year in June 2025, unchanged from May. This figure is slightly below RHB’s earlier projection of 1.0% and Bloomberg’s estimate of 0.9%. Similarly, the core CPI held steady at 0.6% year-on-year.
Barnabas Gan, Group Chief Economist and Head of Market Research at RHB Bank, highlighted the potential for a flattening of the policy slope due to ongoing global uncertainties in the second half of 2025. This move by RHB reflects a cautious approach amidst a complex economic landscape.
The revised forecast is significant as it indicates a shift in economic expectations for Singapore, potentially influencing monetary policy decisions and economic planning. As the MAS prepares for its meeting, the focus will be on how these adjustments will impact the broader economic environment in the region.
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