SIBOR rate up slightly on Wednesday

A key interest rate that housing loans in Singapore are pegged to rose marginally on Wednesday (Jan 7), following two days of sharp increases.

Bloomberg data showed the three-month Singapore Interbank Offered Rate (SIBOR) was fixed at 0.63707 per cent at 11.30 am on Wednesday, up slightly from Tuesday’s fixing of 0.62052 per cent.

The interest rate benchmark had jumped 7.4 per cent on Tuesday following a massive 26 per cent increase on Monday. SIBOR is the rate at which banks lend to one another and is a widely used measure of the cost of funds. The rate had hovered around the 0.4 per cent level for most of 2014.

Most housing loans in Singapore are set at a premium over SIBOR.

Source : Channel NewsAsia – 7 Jan 2015