Singapore rates unlikely to stay negative, but may remain low till 2021

Singapore

SINGAPORE'S one-month Swap Offer Rate (SOR) fell briefly below zero last Wednesday for the first time since 2011, raising the spectre that the Republic could be following in the footsteps of other countries with persistent negative rates.

But analysts tell The Business Times that negative rates - a rare occurrence here - are unlikely to persist, even as both SOR and Singapore Interbank Offered Rate (Sibor) are expected to remain low till 2021.

Negative rates have generally been associated with issues such as asset market distortion, worse…

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