This week, Sibor fell to 0.89 percent, not far from the all-time low of 0.69 percent recorded on Nov 21, 2003. The 3m and 6m SOR touched lows of 0.78 and 0.94 respectively. Coupled with the expected weakness in the currency, the interest rates here will likely stay low for some time as anticipated. Good news for SIBOR or SOR pegged mortgagers.
Nevertheless, taking cue from Libor, risk aversion could kick in and cause a spike at any time. Another thing to watch out for is inflation. Should it return, we will see rates headed up again.