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Singapore Minister warns home buyers about rising rates

SINGAPORE, April 6 (Bloomberg): Singapore’s government is warning home buyers to think carefully about purchasing properties as interest rates increase in tandem with those in the US, potentially boosting debt servicing costs. The risk of rising interest rates is a reminder that everyone should continue to exercise caution in their property purchase decisions,” Monetary Authority of Singapore Chairman and Senior Minister Tharman Shanmugaratnam said. He was speaking in response to a parliamentary question on Monday on the impact of rapidly rising US long-term rates on the city-state. Rising rates in the US should be seen in the context of a strong economic recovery there, which will add some momentum to Singapore’s own rebound, Tharman said.

Singapore Minister Cautions Home Buyers on Rising Interest Rates

Singapore Minister Cautions Home Buyers on Rising Interest Rates Chester Yung, Bloomberg News (Bloomberg) Singapore expects domestic interest rates to rise in tandem with climbing U.S. rates, which may increase debt servicing costs and affect local home buyers. “The risk of rising interest rates is a reminder that everyone should continue to exercise caution in their property purchase decisions,” Monetary Authority of Singapore Chairman and Senior Minister Tharman Shanmugaratnam said in response to a parliamentary question on Monday on the impact of rapidly rising U.S. long-term interest rates on the city-state. The rise in interest rates in the U.S. should be seen in context of a strong recovery in the economy there, which will add some momentum to Singapore’s own economic recovery, he said. Singapore’s economy is expected to grow between 4% and 6% in 2021, after declining 5.4% in 2020 due to the Covid-19 pandemic.

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