The currency war has yet to pull in Singapore. Data released today showed a large q/q annualised drop in Q3 GDP but the big surprise was the decision of the Monetary Authority of Singapore to tighten policy further and allow for faster appreciation of the Singapore dollar. This is the appropriate decision to take and policy-makers across Asia should take note. The authorities are rightly very confident that the local upswing will be sustained, albeit at a far slower pace than has been the case over the last 12 months, and are focused on ensuring that inflation does not develop into a problem.