SIBOR has fallen almost 20 per cent to 0.830 per cent from the year high of 1.027 per cent, much to the relief of many homeowners when previous quarters turned up unrelentingly high interest rates.
The three-month Singapore interbank offered rate, commonly referred to as SIBOR is used to price home loans. The recent receding number is a result of the Singapore dollar strengthening against the greenback (USD) in response to Monetary Authority of Singapore (MAS) decision to keep its monetary policy unchanged. The soft economic data from the United States contributed in part to the drop in interest rate as well.
The local interest rate is not expected to stagnant at this figure as United States’ unemployment rate and inflation continues its shift toward Fed’s target levels, which will actualise an interest rate hike in the later part of the year, coupled with the strong US dollar.