More bad news ahead: The Swap Offer Rate or SOR has turned negative. Loosely speaking, the SOR represents the cost of borrowing in Singapore (although the exact formula requires a PhD to understand). Many mortgage loans are pegged to the SOR. The negative value is an indication that too much cash is being held by the bank that they are, theoretically speaking, paying people to borrow from them! Of course, they will not do that because it sounds pretty silly. I read in the newspaper that some bankers say it is because investors are switching out of the US dollar and there are increased cash flows into Singapore. To me it means more inflation coming to Singapore – just when we do not need one! If there is going to be a greater threat of inflation coming, MAS would appreciate the Sing dollar double quick time so as to make ......