The Singapore banks are reducing the interest rates for deposit accounts to 0.05%, the lowest in my living memory (I'm not that old). That would translate to a negative 4.95% real interest rate assuming the inflation rate for 2011 is 5%. In layman terms, no use putting your money in the bank. It's almost equivalent to putting it under your pillow.
The only good news is that the economy is still growing. Stagflation will be a scary thought.
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