(Corrects to show core rate was also at 0.5% in March in paragraph 7 and removes extraneous ‘forecast’ in same paragraph)
SINGAPORE (Reuters) -Economists have raised their forecasts for Singapore’s growth this year and expect monetary policy to be held steady at a review next month, a survey of forecasters by the Monetary Authority of Singapore showed on Wednesday.
Geopolitical tensions were cited as a top downside risk for the city-state, while an easing of trade tensions and a sustained tech cycle upturn were seen as potential upside risks, the responses from 20 economists for the September quarter survey found.
The median forecast for growth this year was raised to 2.4% from 1.7% in the June quarter survey. In August, the government raised its forecast range for 2025 growth to 1.5% to 2.5% due to a better-than-expected first half performance.
Economists expected year-on-year growth of 0.9% in the third quarter, the survey found.
The MAS held policy settings steady at a review in July, after easing in January and April, and the survey found a majority of economists expected no change to policy at the next review in October. Policy was also seen on hold at the January 2026 review.
The median forecasts for core inflation, which excludes private road transport and accommodation costs, edged down to 0.7% from 0.8% in the Q2 survey, while the median forecast for headline inflation was steady at 0.9%, the survey showed.
At a policy review in April, the MAS lowered its forecast range for core inflation to 0.5% to 1.5% in 2025. In March and July, the annual core inflation rate was 0.5%, the lowest rate in more than three years.
The survey published on Wednesday was sent out on August 12, the day that data showed the economy grew an annual 4.4% in the second quarter and the government revised its growth forecast.
(Reporting by Jun Yuan Yong; Editing by John Mair and Tom Hogue)
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