Sibor drops to record 0.51%
By Gabriel Chen
Taken from The Straits Times, 16 Sep, 2010
A key Singapore interest rate that determines some mortgage rates has sunk to a new record low, offering the prospect of even cheaper home loans.

The rate at which banks here lend to one another – the three-month Singapore Interbank Offered Rate, or Sibor – is now 0.51 per cent.

It has been hovering around the mid-0.5 per cent levels for the past few months.

In September 2008, it spiked to 2.22 per cent, as banks were afraid to lend to one another for fear of not getting repaid during the global credit crunch.

Sibor, which also affects rates for consumer loans and deposit rates, has been sliding of late.

This has been in line with the trend of interest rates set by the United States Federal Reserve, which are at historic lows. The Fed is continuing its strategy of trying to...