Since the US is committed to low interest rates over the next two years or so, Singapore too will likely see interest rates remain low and it is quite likely that the Singapore Inter-Bank Offered Rate (SIBOR) will decrease.
As many mortgage rates here are based on SIBOR, this low rate is likely to encourage more Singaporeans to invest in real estate, pushing up prices.
On the other hand, the government has announced a series of steps to curb excessive investment in real estate and, if the market heats up again, the government can be expected to announce further measures to cool the market.
With lower interest rates and increased money supply, a depreciation of the US dollar is likely, which could cause the price of oil and precious metal such as gold to increase. That would mean higher prices for petroleum-based products and transportation, which would, in turn, increase prices here of food products, most of which are imported. Full story
