SINGAPORE: An important update has arrived for all Singapore citizens. As you know, the new year 2026 has begun, and in this situation, interest rates in Singapore may fall to their lowest levels in the second quarter of 2026. However, the US Federal Reserve (Fed) is cutting rates, which will reduce the wait for hedging opportunities. Let us tell you the main reason for this.
Singapore hits bottom in second quarter
The information revealed through a gallery media report states that the Singapore Overnight Rate Average or SORA has become the city state’s main interest rate benchmark and reflects the average rate of unsecured overnight interbank Singdollar borrowings and this is going to directly impact the common citizens.
Secondly, information is also coming to light that Peter, Senior Foreign Exchange Strategist of UOB, has recently said that if you want to move the interest rates forward, then it is very important to pay attention to certain things. He has said that the time frame for considering this will be the first and second quarter of 2026. And we are not far from the lower level, this can also affect the citizens of Singapore as a whole, but till now no official information has been revealed from the concerned department in this matter.
Speaking at a Market Outlook webinar on Wednesday, Chia also said that the Sora could undergo a significant change by the end of 2026, with a strong possibility of rising to 1.39% and even falling to around one percent. Discussions about this possibility are now underway in the media and elsewhere.