Photo: Ramir Borja

• Misplaced expectations of US 1Q2015 growth despite the harsh winter led to disappointment when actual results came out
• Fed Chairman Yellen came out to address this misconception as statistical noise and defended the robust recovery of the US economy
• USD surged in response and indicated the market’s acceptance of Yellen’s defence
• Hence it is likely that US interest rates would still rise this year and that the SIBOR will rise accordingly too

The recent decline of the Sibor made the news recently in this Channel NewsAsia article. When I wrote the first Sibor article back in February, the 3-month Sibor was around 0.65%. After the article was published, the Sibor almost doubled from 0.65% to 1.1% in early April. This was followed by a dip (circled in blue below) towards the end of April into May. However this drop is temporary and it should ......