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Banks are raising interest rates even as investors have been piling into stocks – what happens now?

Investors should tread carefully as steadily rising interest rates gradually erode the attractiveness of stocks

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Ben Paul

Ben Paul

Published Mon, Nov 21, 2022 · 05:50 AM
    • CPF could be on the brink of adjusting Special Account interest rates, as 10-year Singapore government bond yields have climbed to more than 3.1 per cent
    • CPF could be on the brink of adjusting Special Account interest rates, as 10-year Singapore government bond yields have climbed to more than 3.1 per cent BT FILE

    FORGET cryptocurrencies and cryptocurrency exchanges. With interest rates rising, the most exciting investment products at the moment seem to be savings and fixed deposit accounts.

    This past week, even as heavyweight investors such as Temasek Holdings, Sequoia Capital and SoftBank Group counted the cost of their failed investments in FTX, OCBC made headlines with the launch of a 12-month fixed deposit product aimed at Central Provident Fund (CPF) members that pays 3.4 per cent per annum.

    The fixed deposit product is being offered under the CPF Investment Scheme (CPFIS), which allows CPF members to invest in everything from stocks and bonds to unit trust funds and endowment policies.

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    Traffic through the strait has been resuming but with interruptions, and there is still little clarity over a permanent solution for passages through the chokepoint.

    Qatari LNG ship struck in Strait of Hormuz, testing US talks

    This comes after a Citi note on Tuesday that lifted target prices for all Singapore banks, with a leading preference and “buy” call for DBS.

    DBS, OCBC and UOB shares hit all-time highs as sentiment improves

    Aster deputy CEO Andre Khor, citing the age of the “polycrisis”, says: “It’s very important to be agile, to be focused on execution… We don’t know all the answers but we keep going forward.”

    ‘Baptism of fire’: Andre Khor on leading Singapore refiner Aster through an energy crisis

    Singapore ranks as the world’s most expensive city for cars and placed third globally for residential property.

    Singapore retains top spot as most expensive city for HNWIs, with five Apac cities in global top 10

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