Photo credit: Jason Leung/Unsplash Much has been said about the high interest rate and inflationary environment that we are living in today. This has put household budgets under great stress. To address the higher cost of living, opposition politician Jamus Lim proposed in a recent Parliament session to raise CPF interest rates temporarily. But can CPF Board really increase their interest rates according to its whim and fancy? Coupled with higher borrowing rates in Singapore, this has cast greater spotlight on how CPF compute their interest rates. Therefore, I will explain in this article how CPF interest rates are calculated and how likely they will increase given the current high interest rate environment. HOW IS CPF OA INTEREST RATE CALCULATED? According to CPF’s website, “savings in the Ordinary Account (‘OA’) earn the 3-month average of major local banks’ interest rates, subject to the legislated minimum interest of 2.5% p.a.”...