Here’s a newsworthy event – The 3-month SOR fell to 0.44% yesterday. This is a whopping drop of 1.1% over the last 3 days! This makes SOR more attractive than SIBOR (3-month) which continues to hold at 0.69%. In fact, at 0.44%, the 3-month SOR is at the same level as the 1-month SIBOR. The fall in SOR might have something to do with the falling US dollar. Here is the technical analysis of the USD/SGD exchange rate trend for those of you knowledgeable in this area.
Recent news indicate that there is “a strong consensus among the G-20 for the need to continue with the trillions of dollars worth of extraordinary stimulus packages”, thus we are likely to see low interest rates for a while yet, though the opposing force of rising inflation is also at work, as seen in the rally in oil price.