Singapore households, businesses to brace for interest rate ‘shock’; Fed hike to slow Asean recovery: Economists

THE United States’ Federal Reserve’s historic rate hike will dampen growth in Singapore and Asean, while the higher interest rates will put pressure on households with mortgages and businesses looking to borrow.

But economists to whom The Business Times spoke were divided over whether the Monetary Authority of Singapore (MAS) would spring a surprise with another off-cycle move before its October meeting.

The Fed announced on Wednesday (Jun 15) a 75-basis-point rate hike, the largest interest rate increase since 1994, to slow the surge in inflation.