SIBOR rises above 1% in sign that mortgages could rise furth

Post Reply
singaporeproperty
Posts: 96
Joined: Thu Apr 18, 2013 4:47 pm

SIBOR rises above 1% in sign that mortgages could rise furth

Post by singaporeproperty » Tue Mar 24, 2015 4:00 pm

The three-month Singapore interbank offered rate (SIBOR) at 1.00129 per cent on Tuesday (March 24) is the first time it rose above the 1 per cent mark in more than six years.

SINGAPORE: A key benchmark lending rate rose above the 1 per cent level for the first time in more than six years, indicating that mortgage rates will increase further in coming weeks.

The three-month Singapore interbank offered rate (SIBOR) was fixed at 1.00129 per cent on Tuesday (March 24), according to Association of Banks in Singapore (ABS) data posted on Bloomberg, up 0.9 per cent from Monday's fixing of 0.99216 per cent. The rate has been climbing steadily since end-December when it stood at around 0.45 per cent.

Many home loans in Singapore are pegged to SIBOR. For instance, Oversea-Chinese Banking Corp (OCBC) has a home loan package that charges an interest rate 0.85 percentage point above three-month SIBOR. If SIBOR rises, the interest rate will also increase. OCBC will review the rate every three months based on movements in SIBOR.

Singapore interest rates have been on the rise, in line with expectations that the US Federal Reserve will increase interest rates this year.

The weakening of the Singapore dollar against its US counterpart has also pushed rates higher since investors need more incentive to hold onto the local currency. The Singapore dollar is currently trading at around S$1.37 to the greenback, from around S$1.32 at the end of last year.

- CNA/kk

http://www.channelnewsasia.com/news/bus ... 37558.html

singaporeproperty
Posts: 96
Joined: Thu Apr 18, 2013 4:47 pm

Re: SIBOR rises above 1% in sign that mortgages could rise f

Post by singaporeproperty » Tue Apr 14, 2015 3:41 pm

Singapore's 3-month Sibor rate slips to 2-week low

The three-month Singapore interbank offered rate (Sibor), which is used to set floating-rate mortgages, slipped to 1.01441 per cent, its lowest level since Mar 30.

SINGAPORE: The Republic's benchmark three-month interest rate eased to a two-week low on Tuesday (Apr 14), after the Singapore dollar rose as the Monetary Authority of Singapore kept its exchange-rate based policy unchanged.

The three-month Singapore interbank offered rate (Sibor), which is used to set floating-rate mortgages, slipped to 1.01441 per cent, its lowest level since Mar 30.

Three-month Sibor is still up by nearly 56 basis points so far this year, putting it on track for its biggest annual increase since 2005, reflecting tighter conditions in the domestic money market and weakness in the Singapore dollar .

A softer Singapore dollar can put upward pressure on local interest rates as investors seek higher yields as compensation for holding the weakening currency.

- REUTERS/av

http://www.channelnewsasia.com/news/bus ... 83032.html

Post Reply

Who is online

Users browsing this forum: No registered users and 1 guest