The figures released from US all point to a tapering of the Quantitative Easing by the Federal Reserves so much so that it is now a question of when rather than a question of whether or not. With the tapering of the Quantitative Easing, interest rates will go higher and all of us will have to adjust to higher interest rates. However I believe our government has more or less prepare Singaporeans for the days of higher interest rates from its previous measures such as the Total Debt Servicing Ratio (TDSR) and the cooling measures on property. From the perspectives of the stocks markets, when the scaling back of the Quantitative Easing comes, stocks like Reits may head south.
I think ordinary Singaporeans will feel the effects of higher interest rates when it comes to their dealings in the property mortgages and bank loans. While it is really not conclusive ......
