Banking Sector Singapore - UOB Kay Hian 2024-06-27: Rate Cuts Coming But Not Too Much

Banking Sector Singapore - Rate Cuts Coming But Not Too Much

Published:
Singapore Banks - DBS OCBC UOB | SGinvestors.ioDBS (SGX:D05) OVERSEA-CHINESE BANKING CORP (SGX:O39)
  • We anticipate one rate cut in 4Q24 (previous: three rate cuts) and four rate cuts in 2025 (unchanged), bringing the Fed Funds Rate to 4.00% by end-25. Rate cuts are less pronounced due to sticky inflation. The last mile for the deceleration of inflation is drawn-out due to tight labour markets.
  • - Read this at SGinvestors.io -
  • DBS and OCBC provide 2025 dividend yields of 6.7% and 6.2% respectively. BUY OCBC, followed by DBS.

The front-runners in cutting rates.

  • - Read this at SGinvestors.io -
  • Bank of Canada lowered its overnight rate by 25bp to 4.75% in Jun 24, the first G-7 country to cut interest rates.
  • European Central Bank cut the interest rate on its main refinancing operations by 25bp to 4.25% in Jun 24.
  • Unfortunately, the Fed is not able to follow suit in the near term.

The Fed adopting wait-and-see approach for rate cuts.

  • Read more at SGinvestors.io.



Above is an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.



Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-06-27



More reports on banking & finance sector:
Analyst Reports on Singapore Banking & Finance Sector

Read also:
Analyst Reports on DBS Group
Analyst Reports on OCBC Bank
Analyst Reports on United Overseas Bank (UOB)






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