yongsaver
Senior Member
- Joined
- Jun 19, 2015
- Messages
- 945
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- 29
we have already witnessed I/R dropping since last year,...i think going forward, will stay sideways....and mirrors changes to US rates..why so,..becos SG uses only exchange rate nia as a monetary tool...so when US Interest rates change, USD/SGD exchange rate changes and to compensate for such changes, MAS will intervene by tightening/easing money supply, and becos I/R is essentially the price of money, it will be changed consequently....so thats the reason why end of the day, the only thing to see is how US rates move...so have to look out for Fed meeting minutes..the current FED policy is for gradual increase in I/R going forward...the key word is "gradual".. so shouldn't see huge jumps,..but trajectory has already been set liao.
cheers.
cheers.