Interest Rates Unlikely To Rise Soon

Interest Rates Unlikely To Rise Soon

By now, you would have observed the low savings interest rates offered by banks and financial institutions in Singapore. Singapore Savings Account Rates blogspot.com hopes that this news analysis on interest rates would provide our readers some points of interest regarding where interest rates are headed.

(1) Federal Open Market Committee (FOMC), Federal Reserve Bank, USA:

Press Release Date: June 24, 2009
"Information received since the Federal Open Market Committee met in April suggests that the pace of economic contraction is slowing.

Conditions in financial markets have generally improved in recent months. Household spending has shown further signs of stabilizing but remains constrained by ongoing job losses, lower housing wealth, and tight credit.

Businesses are cutting back on fixed investment and staffing but appear to be making progress in bringing inventory stocks into better alignment with sales.

Although economic activity is likely to remain weak for a time, the Committee continues to anticipate that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will contribute to a gradual resumption of sustainable economic growth in a context of price stability.

The prices of energy and other commodities have risen of late. However, substantial resource slack is likely to dampen cost pressures, and the Committee expects that inflation will remain subdued for some time.

In these circumstances, the Federal Reserve will employ all available tools to promote economic recovery and to preserve price stability.

The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period."

(2) OCBC Wealth Management Report: 
Date : 28 July 2009

"Overall however, the consensus appears to be for slow growth for the rest of this year, with some suggestions that perhaps the U.S. and even other countries may need a second round of economic stimulus to ensure that the fragile recovery doesn't wane.

The Fed therefore should continue to keep its benchmark interest rate unchanged at between zero per cent and 0.25 per cent over the next few months as the economic outlook remains uncertain and unemployment levels are still high."

(3) UOB Global Market Analysis:
30 July 2009

Interest Rates:
Current Rate | Next Meeting | UOB’s Interest Rate Forecast
USD Fed Funds Rate 0.00-0.25% 11-12 Aug 0.00-0.25%
EUR Refinancing Rate 1.00% 06 Aug 1.00%
GBP Repo Rate 0.50% 06 Aug 0.50%
AUD Official Cash Rate 3.00% 04 Aug 3.00%
NZD Official Cash Rate 2.50% 30 Jul 2.50%
CAD Overnight Rate 0.25% 10 Sep 0.25%

Information is published for information and general circulation only and is not to be taken in substitution for the exercise of judgement by the reader, who should obtain separate legal or financial advice.

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The Team
Singapore Savings Account Rates.