Singapore should allow its currency to strengthen at a faster pace to combat inflation, the International Monetary Fund said, even as its faces a worsening slowdown in economic growth.

'Ensuring that inflation expectations remain well anchored is a policy priority,' the Washington-based lender said in a statement on its Web site late on Wednesday, predicting consumer price gains will stay 'elevated.'

The Singapore dollar, which climbed to its strongest in more than a decade earlier this year, has since slid and is Asia's worst performer this quarter amid concern growth will slump, said Bloomberg news.