“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.
The Straits Times, Lowest Bank SIBOR rates since 2014, 6 Apr 2020
SIBOR Rate Historical Chart (2006-Present)
CNBC, Federal Reserve cuts rates to zero, 15 Mar 2020
The Economist, Falling Deflation, 7 Nov 2013