MAS is going to increase interest rates in Singapore

Home buyers in Singapore has enjoyed a very low mortgage rate but this may soon to be over, said economist.

Some economic expert said the interest rates likely to climb by next year, as result of interest rates in US is likely going to climb up as well.

Monetary Authority of Singapore (MAS) conducted a survey to 22 economist in Singapore, the three-month US-dollar Singapore Interbank Offered Rate (Sibor) will likely increase 0.2 percentage point to 0.5 percent in 2011.

In the meantime, 3 month SIBOR rate is projected to jump to 0.7 percent from 0.5 percent (current 3 month SIBOR interest rates).

As the result of the increasing US mortgage rates and ighten monetary policy towards the second half of 2011, Economic expert have predicted interest rates in Singapore hikes.

“There is an upward bias of interest rates in the US, and although I don’t expect the rates there to jump to 3.5 percent any time soon, rates are on an upward trend,” said Leong Wai Ho, an economist at Barclays Capital, citing that Singapore rates follow closely with the US rates.

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