SINGAPORE: Attention rates in the United States may be unchanged , because prices has hardly improved much.
Jerome Powell, the chairman of the US Federal Reserve, stated that it would probably take longer than recently anticipated to gain the “greater confidence” required to begin rates reductions.
Singapore’s interest rates are determined by international levels and foreign exchange market objectives. That includes generally following another central bankers ‘ directives, particularly the US Fed.
Does the interest rates in savings accounts continue to be great?
Not always, according to authorities.
Standard Chartered Bank and UOB have now reduced the interest rates on their flagship saving transactions.
Businesses pay attention to those who deposit money with them and, conversely, create interest money from those who borrow funds from them.
Some banks do n’t make as much interest income because they have more money than their customers want to borrow.
Because property transactions have slowed down, Mr. Alfred Chia, CEO of SingCapital Financial Advisor, said,” They have challenges lending this money out .”
They have to make substantial interest repayments at the same time.
Businesses that lower interest rates may be attempting to reduce expenses.
Banks may continue to face the problem of having more money than they can lend out, according to Mr. Chia as interest rates continue to be higher in the US.
According to Mr. Glenn Thum, older research scientist at Phillip Securities Research, the decision to cut costs may not be due to the Fed or business objectives, but rather for UOB.
Instead, he speculated that the banks” too violently at the beginning” increased rates.