Sibor May Drop Further

As Sing$ appreciates, interest rates may fall to levels last seen in 2003, and it could weaken demand for exports which would affect profits of companies.

Current 3mth Sibor is 1.25% and is expected to fall further to 0.75% - 1.00% by 4Q08. Its record low was 0.56% in Aug 03.

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Sibor: Singapore Interbank Offered Rate
- The rate at which banks lend to one another.
- Some mortgage loans are linked to Sibor for transparency in rates movement.
- Also an indication where the deposit and savings account rates are heading.

SOR: Sibor + bank's lending costs. Currently is at about 1.39%.

* AsiaOne-StrongerS$ , AsiaOne-Sibor *