Government gears up for war against inflation

MAS will allow SGD to strengthen further to combat inflationary pressures.

In a statement, Second Finance Minister Lim Hwee Hua said, MAS would strengthen the SGD if necessary to limit the impact of rising prices. According to OCBC, these comments will only work towards heightening expectations of a further tightening by the monetary authority as its next Monetary Policy Statement in April 2011.

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