The US economy is doing well and the Federal Reserve has raised interest rates for the first time in almost a decade in a bid to tighten money supply.
While the rate increase was small at 0.25% per year and widely anticipated, it is highly likely that more increases will follow. As the liquidity in the US financial market is reduced, there could be far-reaching implications on the global economy.
Singapore property investments will also be impacted by the Fed’s new policy as interest rates here mirror the increase in the US.
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Appreciation of US Dollar lead to increase in Sing interest rates
Government intervention in property market
Government stimulus to increase property prices
Greater returns in global financial markets
Impact on increase in mortgage rates
Impact on Singapore property values
Lower demand
Singapore affected by slowdown in China economy
Singapore economy affect by increase in interest rates
Stronger US Dollar depreciate Sin Dollar