Singapore’s 3-month SIBOR rate plunged almost 20 percent at its latest rate fixing on Tuesday from a high of 1.027 percent recorded on 9 April 2015, revealed media reports.
SIBOR, which is the rate most home loans are pegged at, stood at 0.830 percent on Tuesday.
But the decline is not expected to continue as the US dollar maintains its strength against the local currency. Economists noted that as US interest rates are expected to rise in the second half of this year, local interest rates including SIBOR will increase again.
The SIBOR jumped to this year’s peak from December last year following the weakening of the Singapore dollar against the greenback. The US dollar peaked on 18 March at S$1.39 to $1.