Chart of the Day: Singapore's interest rates to remain low
Subdued economy to help to keep home prices in check.
This chart from PropNex research shows that the Singapore Interbank Offered Rate (SIBOR), which is highly correlated with US interest rates, has started to moderate since March and is expected to remain low.
PropNex notes that a subdued economy would help to keep home prices in check and the low interest rate environment continues to be supportive of home financing.
This comes as the US Federal Reserve said on 10 June it would keep its benchmark interest rate near zero through 2022.
PropNex notes that at this point, there is no clarity on the duration of the pandemic and until a vaccine is made widely available. However, as COVID-19 concerns ebb over time, buyers should start to return to the market, particularly those who are more confident about job security or have built up substantial savings for investment.