More rate hikes ?

[ahnyaahnya]

Coming up ?
https://www.cnbc.com/2023/03/07/fed...to-be-higher-than-previously-anticipated.html

 

[havetheveryfun]

yes please

 

[sglandscape]

higher terminal rate, so hopefully SGD rates would cross 4.5% on the short term and 3.5% on the long term

 

[d5dude]

And the yield curve inverts even more... 2s 10s spread now most negative since 1981 (which also preceded the 1981-1982 recession).

 

[sglandscape]

And the yield curve inverts even more... 2s 10s spread now most negative since 1981 (which also preceded the 1981-1982 recession).

currently at 1.2% right after the Fed signalled that the terminal rate would be higher than previously communicated.

also the duration of inversion is longer than in the past. could be a sign that the Fed is not hiking aggressively enough.

 

[d5dude]

currently at 1.2% right after the Fed signalled that the terminal rate would be higher than previously communicated.

also the duration of inversion is longer than in the past. could be a sign that the Fed is not hiking aggressively enough.

No the yield curve was inverted for 20 months between 1978 and 1980, and it was inverted for 12 months between 1980 and 1981. Current yield curve has only been inverted for 9 months so it can definitely stay this way for another 10 months or maybe more before the fed starts cutting (bringing 2s 10s spread back into positive territory).

Either way I dun see this situation lasting very long unless its "different this time".

 

[direbmem]

5%pa interest rates for our savings account seems likely

 

[W1n7f1r3]

Double edged sword with continued strong employment rate

 

[super pickle]

Seems to be the case. Likely hit 4.5% in the coming months.

 

[maumu]

meanwhile.. cpf-oa still stuck at 2.5%

 

[reddevil0728]

meanwhile.. cpf-oa still stuck at 2.5%

For years when interest is way below 2.5%, cpf-OA also stuck at 2.5%

 

[havetheveryfun]

5%pa interest rates for our savings account seems likely

those who already fully paid their house and have a lot savings huat...

not that good for young couples looking to buy their first house or young adults just coming out into the workforce...

 

[BBCWatcher]

those who already fully paid their house and have a lot savings huat...
not that good for young couples looking to buy their first house or young adults just coming out into the workforce...

That’d depend on the impact of ~5% mortgage interest rates (if we see them) on home prices. Home prices in Singapore have been rising pretty aggressively since the second half of 2020. In some other countries higher interest rates are finally starting to push home prices down (as one would expect), but Singapore is a little slower in that respect. Probably because mortgage interest rates haven’t gone up as much in Singapore. If homes end up more affordable that’s a good thing for prospective home buyers.

Higher interest rates (other things being equal) are no problem for your second category: young adults just coming into the workforce who aren’t looking to buy a house. They’re going to be (hopefully!) saving, and higher interest rates are great for savers.

Caveat: only real interest rates matter. Nominal rates don’t.

 

[Think09]

https://www.channelnewsasia.com/bus...-fed-rate-hike-after-powell-testimony-3332736

 

[maumu]

For years when interest is way below 2.5%, cpf-OA also stuck at 2.5%

that is by legislation. is there a cap on the max by legislation? why you make it sound like it's wrong to talk about it?

 

[reddevil0728]

that is by legislation. is there a cap on the max by legislation? why you make it sound like it's wrong to talk about it?

nope. no cap. in fact got a formula. so it is accounted for.

eh dunno why u seeing shadows when there are none leh.

was making similar kind of statement as you.

 

[DevilPlate]

those who already fully paid their house and have a lot savings huat...

not that good for young couples looking to buy their first house or young adults just coming out into the workforce...

That's why CPF OA has to remain at 2.5% so that HDB loan stay at 2.6%.

 

[ahnyaahnya]

For years when interest is way below 2.5%, cpf-OA also stuck at 2.5%

That time nobody complain why CPF no follow ..

 

[direbmem]

If interest rates rise 25% from 4%pa to 5%pa, would HDB prices drop by 25%?

 

[reddevil0728]

If interest rates rise 25% from 4%pa to 5%pa, would HDB prices drop by 25%?

resale or BTO?