- March’s 3-month SORA was down 5bps m-o-m to 1.09%, the lowest since July 2022, and fell by 153bps y-o-y. Singapore loan growth has continued to climb (Feb26: +6.3%). Banks are guiding low to mid-single digit. CASA rose 11% y-o-y and CASA ratio to deposits at 20% (Jan25: 19.8%), a tailwind for banks, lowering funding costs and cushioning NIM compression.
- - Read this at SGinvestors.io -
3-month SORA continues to fall, lowest in 45 months
- Singapore's interest rates fell 5 bps m-o-m to 1.09% in March, the lowest since July 2022. Furthermore, March’s 3-month SORA fell by 153bps y-o-y, the smallest y-o-y decline in 9 months, and was 4bps lower than the 1Q26 3-month SORA average of 1.13%. The surge in capital inflows (Feb26 FX reserves: +10% y-o-y), as Singapore remains a “safe haven,” has driven interest rates sharply lower. We expect the 3-month SORA decline to taper off for the rest of the year as expectations of Fed rate cuts are lowered due to the Middle East conflict.
- - Read this at SGinvestors.io -
Singapore loan growth holds steady above 6%
- Read more at SGinvestors.io.
