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3-month Sibor barely moves, up 0.001 to 1.13375% after Fed hike

THE key three-month Sibor or Singapore interbank offered rate rose a tiny 0.001 to 1.13375 per cent, at the 11.30am Thursday fixing from Wednesday's 1.13275 per cent, following the overnight rate hike in the US.

At 1.13375 per cent, the three-month Sibor - typically used to price home loans - is below the year's high of 1.13958 per cent reached on Sept 17. Still, it is almost three times the 0.44437 per cent level a year ago.

The US Federal Reserve, as expected, announced on Wednesday its first interest rate hike in almost a decade, signalling the US has finally moved beyond the 2008 crisis.

Its policy-setting committee raised the range of its benchmark interest rate by a quarter of a percentage point to between 0.25 per cent and 0.50 per cent.

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The three-month SOR or swap offer rate - a benchmark for commercial loans - rose at a faster pace to a new year-high of 1.61129 per cent on Wednesday, up from the previous 1.59168 per cent. The SOR which are forward rates are published at 8pm.