Higher-for-longer US rates could boost Singapore banks’ earnings beyond 2026: analysts
A hawkish Fed could be good news for DBS, OCBC and UOB, even as benefits may not be equal across the sector
[SINGAPORE] A more hawkish US Federal Reserve could provide an earnings boost for Singapore banks by slowing the pace of net interest margin (NIM) compression, analysts say.
Some have also suggested that the sector’s outlook beyond 2026 may improve if interest rates remain elevated.
The prospect of US rates staying higher for longer comes as markets reassess expectations for monetary easing after the Fed signalled a firmer stance on inflation and interest rates under new chair Kevin Warsh.
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