MAS released their monetary policy statement yesterday.
CPI inflation rose from 3.4% in Q3 2010 to 5.2% in the first two months of 2011. For the whole year, CPI inflation is expected to come in at the upper half of the 3-4% forecast range while MAS Core Inflation will be 2-3%.
MAS will recenter the exchange rate policy band upwards in order to ensure price stability in the medium term while keeping growth on a sustainable path. There will be no change to the slope and width of the band.
Following the announcement by MAS yesterday, the US dollar fell to S$1.248. At the time of this post, it is trading at around S$1.244.