The three-month Singapore interbank
offered rate (SIBOR) was fixed at 1.00129% on Tuesday (March 24), according to
Association of Banks in Singapore (ABS) data posted on Bloomberg, up 0.9% from
Monday's fixing of 0.99216%. The rate has been climbing steadily since
end-December when it stood at around 0.45%.
This is the first time in more than six
years that the SIBOR - a key benchmark lending rate - has risen above the 1%
level, which may indicate that mortgage rates will increase further in coming
weeks.
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% 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.
Info
Source: CNA
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