On 16 Dec, Fed increases the interest rate in USA.
In this modern world, this increment in interest rate will eventually cause the Singapore Interest rate to increase as well. There is a whole lot of information on the net explaining this link
This rise in interest rate will also result in a strong USD dollar in future.
So how will this affect the companies in Singapore?
Higher Interest Rates:
- Those companies that uses leverage to grow will be in for a tough time. Their debt will balloon and they will need to pay higher finance cost.
- Companies with debts on fixed interest rate will not be affected as much.
- Companies with huge cashload will gain more interest earning.
- Companies earning rental from properties that are mortgaged to banks, may have huge opportunity costs. If their actual rental yield is not higher than the yield ...
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