Fixed Deposit Rates in Singapore [January 2024]
Global Interest Rates Hit Record Highs in 2023
Since 2007, the interest rate quantile has reached 100% for countries with consumption-oriented economies, such as the United States and the Eurozone; manufacturing economies, like Mexico and Turkey; as well as resource based economies, including Canada and Saudi Arabia.
Last week, after the European Central Bank raised interest rates by 25bp, the subsequent meeting statement revealed that "we believe that key interest rates have reached a level that can be maintained for a long enough period of time." This was interpreted by the market as implying that it was the last interest rate hike.
Tightening financing conditions and weak external demand have forced many non-U.S. countries to further lower their economic forecasts. Also high deposit rate will suppress economic activity. The peak of global interest rates may have arrived.
Data Source: Bloomberg
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22 September 2023
