MAS released their monetary policy statementlast Friday.
Core inflation should gradually ease from an estimated 2.3% in Q4 this year to 1.5% at the end of 2012. It is forecast to be around 1.5-2% in 2012, compared to about 2.1% in 2011.
Growth in the Singapore economy could fall below its potential rate of 3-5%.
MAS will continue with the policy of a modest and gradual appreciation of the S$NEER policy band in the period ahead. However, given the expected moderation in core inflation, the slope of the policy band will be reduced, with no change to the width of the band and the level at which it is centred.