Sibor and SOR rates seem to be consolidating and staying low this week, both (3-month rates) maintaining below 0.9% consecutively for the last 3 days. There is perhaps a lack of driver, with Libor rates (3m USD) hovering around 2.15% – 2.30% and USD/SGD exchange rates holding at 1.53 for now. News of impending Fed Funds Rate cut, possibly to 0.5%, might just help to keep Sibor and SOR below 1% for the months ahead.
Meanwhile, we are seeing more signs of the recessionary economic landscape, with pay cuts at Temasek, fall in top civil servants’ pay, falling private home prices, $2 COE, among other interesting news reported the past week. It is also interesting to note that more advertisements are being put up for luxury items such as high-end cars. There is indeed cause for worry as none will be spared, but lets not forget happiness is a choice.