COVID-19 Special: Lowest Bank SIBOR rates since 2014

Banks in Singapore have recently announced revisions to interest rates on savings accounts, an expected and necessary move given the declining interest rate environment globally amid the coronavirus pandemic, experts said.

Quote from The Straits Times 

Who could have thought that a pandemic that brought so much pain and grief to all of us could also have a silver lining in-between? As of May 2020, the SIBOR rate for UOB for example, has dropped to 0.65%! The last time the SIBOR rates were so low was back in 2014 during the ‘global deflation period‘.

This phenomenon all started when the US Federal Reserve cuts rates to zero and launches massive $700 billion quantitative easing program to ‘shelter the economy from the effects of the virus.’

I have attached the SIBOR Rate Historical Chart from 2006 till present for your reading.

I have some clients who tell me that they are waiting for the interest rates to drop even lower before they consider purchasing a property or refinance their current property.

The question is, trying to time the SIBOR is like trying to time the stock market isn’t it? Plus, SIBOR rates are ever-changing. Hence, wouldn’t it be ideal to purchase or refinance property ASAP to enjoy the favourable interest rates as long as possible? RET

Contact Reuel Eugene Tay at +65 9833 6450 to enquire about bank interest rates for purchase or refinancing.

Source:

The Straits Times, Lowest Bank SIBOR rates since 2014, 6 Apr 2020
https://www.straitstimes.com/business/banking/banks-here-cut-deposit-rates-in-line-with-global-markets

SIBOR Rate Historical Chart (2006-Present)
https://www.moneysmart.sg/home-loan/sibor-trend

CNBC, Federal Reserve cuts rates to zero, 15 Mar 2020
https://www.cnbc.com/2020/03/15/federal-reserve-cuts-rates-to-zero-and-launches-massive-700-billion-quantitative-easing-program.html

The Economist, Falling Deflation, 7 Nov 2013
https://www.economist.com/leaders/2013/11/07/the-perils-of-falling-inflation

Published by Reuel Eugene

Real Estate Advisor | Researcher | Asset Progression | Creative marketing

One thought on “COVID-19 Special: Lowest Bank SIBOR rates since 2014

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: