As the Fed announced their 3rd rate cuts of the year. Guidance is 1.5%-1.75%. They said they would pause for now. We all begin to worry whether if we are heading to a subzero environment. As mentioned by experts, a rate cut may be good or bad depending on your perspective.
It is good for borrowers (e.g. home loan borrowers) as this reduces the interest rate they pay. Assuming that the banks pass on the savings. Unpaid advertisement: DBS online home rate is now 1.86% fixed for 2 years. That’s a really fantastic rate to do refinancing or purchase of a new house if you are considering one.
It’s horrendous if you a saver, the deposit rates are dropping. Even the local SSB gives 1.56% for first year and 1.71% for 10 years. A better solution would be to go to specialised saving accounts like DBS Multiplier, OCBC 360, UOB
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