SINGAPORE: The three-month Singapore Interbank Offered Rate (SIBOR) reached 0.63 per cent on Wednesday (Jan 7), compared to 0.45 per cent on Jan 2.
SIBOR is a key benchmark used to determine various lending rates. While the recent increase may signal the end of low interest rates, analysts said that for now, SIBOR remains well below historical levels and pointed out that from a historical standpoint, interest rates are still some way off from “normal”.
Mr Alvin Liew, a senior economist at UOB, said: “If you bring yourself back to 2007, the rates were easily many times higher than where we are at 0.6 per cent. So I think largely in part due to the last six years, prolonged stability has inbuilt a lot of complacency in the market psyche, now with rates coming up.
“It is coming up from a very low base, so the increase looks magnified, but on a historical basis, we are still not anywhere near normal interest rates levels.”