3-month Sibor barely moves after Fed hike but situation won't last

Singapore

THE key three-month Sibor or Singapore interbank offered rate barely moved on Thursday, rising a tiny 0.001 percentage point to 1.13375 per cent from Wednesday's 1.13275 per cent, following the overnight rate hike in the US.

But borrowers are unlikely to get off so easily, with expectations that the US Federal Reserve would raise interest rates throughout 2016, the 3-month Sibor could jump to 1.4 per cent over the next three months and reach 2 per cent by the fourth quarter of next year.