The Business Times
business-time-50
MIND THE GAP
·
SUBSCRIBERS

Higher-for-longer rates a boon for savers

There is no shortage of higher-yielding options if investors are prepared to recalibrate their risk and liquidity requirements

google-preferred-sourceAdd BT as a preferred source
Genevieve Cua

Genevieve Cua

Published Mon, Dec 23, 2024 · 06:00 AM
    • Lower-risk alternatives such as fixed deposits may remain attractive as expectations for rate cuts by the US Federal Reserve in 2025 are now dampened.
    • Lower-risk alternatives such as fixed deposits may remain attractive as expectations for rate cuts by the US Federal Reserve in 2025 are now dampened. PHOTO: PIXABAY

    RISK-AVERSE investors may well be able to keep having their cake and eating it.

    The US Federal Reserve’s guidance for interest rates in its latest meeting last week dampened expectations for rate cuts in 2025. Fed chairman Jerome Powell indicated two cuts in 2025 or a total of 50 basis points, compared to earlier expectations of 100 basis points.

    Markets, however, may be pricing in only one rate cut in 2025, or even none. Morningstar said the market is incorporating a 60 per cent probability of the fed funds target range being at 4.25 to 4.5 per cent or higher by end-2025, “meaning no net rate cuts in 2025”.

    Mind the GapSingapore Savings BondsTreasury billsrobo-advisorsBanks

    TRENDING NOW

    Longest-serving chief minister Taib Mahmud’s legacy looms large over Sarawak as a family feud over his estate threatens to expose skeleton’s in the eastern state’s political closet.

    On the board but frozen out: The Taib family feud tearing Sarawak construction giant apart

    Thailand’s target is to export seven million tonnes of rice globally in 2026, but the Middle East war has turned the world topsy-turvy with supply disruptions, high oil prices and economic uncertainty.

    Thai and Vietnamese farmers may stop planting rice because of the Iran war. Here’s why

    Senior Minister of State for Digital Development and Information Tan Kiat How said the government is working with partners who have access to Anthropic's Mythos to understand its capabilities.

    MAS convenes bank CEOs over AI cyberthreats; boards told to own risks, not leave to IT teams

    Electric vehicles and the changed dynamics of mainstream and luxury car segments mean Certificates of Entitlement should not be used to classify cars.

    Is it time to scrap COE categories for cars? 

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More