Government should focus on SGD/USD exchange rate.
Commenting on Singapore inflation after the release of October's inflation numbers, Maybank Kim Eng said that it expects 2012 headline CPI of +4.5% (2012 YTD: +4.7% YoY). It also maintained its 2013 inflation rate forecast of +4.0%.
"Exchange rate policy will be key in containing imported inflation, and we see SGD/USD exchange rate to sustain its upward path, ending next year at 1.19 from 1.22 at the end of this year," it added.
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