3-MONTH SIBOR HITS
FOUR-MONTH HIGH
Aug 14, 2015
As the Singapore dollar continues to weaken against the
greenback following China’s move to devalue the yuan, a key benchmark rate
that’s used to price most of the housing loans here hit a four-month high on
Thursday.
The three-month Singapore Interbank Offered Rate (SIBOR)
climbed to 0.9388 percent two days ago, and rose further to 0.9345 percent
yesterday.
It was reported the banks have yet to adjust mortgage rates
pegged to the SIBOR.
Currently, the rates are hovering around 1.5 to 1.7 percent,
and may reach two percent by the end of the year.
SIBOR is the rate at which banks loan from one another, and
is also the rate at which most home loans are pegged at. An increase in the
SIBOR reflects tighter domestic money market conditions and weakness in the
Singapore dollar. Weakness of the local currency versus its foreign
counterparts can put upward pressure on local interest rates as investors seek
more incentive to hold on to the local currency.
Info courtesy –
Property guru
