Results 1 to 20 of 20

Thread: The era of low interest rate shall be over soon?

  1. #1

    Question The era of low interest rate shall be over soon?

    Given the robust employment rate and low inflation in the U.S., the Fed is most likely to increase 25 basis point of the interest rate since the GFC in 2007/2008 in the upcoming FOMC meeting.

    After 3 rounds of QE, U.S. economy has finally recovered to a certain extent.

    On the other side of the World, other major economies are still having recession or sluggish growth. China, no. 2 economic power has cut interest rates several times, and they will continue to do so to prop up the economy.

    Japan, no. 3 guy is suffering from recession. Abe's government will continue the QE programs as well as coming more stimulus packages to revise the economy.

    Euro-zone under the mandate of the ECB will continue the QE program as well as introducing more stimulus packages.

    Other major economies like Brazil, OPEC nations and Australia are suffering due to the collapse of commodity prices.

    Therefore, we can see that only U.S. is doing well. Can U.S. alone lead the rest of the world out of the wood?

  2. #2
    Senior Member Sion's Avatar
    Join Date
    Jan 2004
    Location
    新天地
    Posts
    4,768

    Default Re: The era of low interest rate shall be over soon?

    The Return of HDRI?

    High Dynamic Range Interest?

  3. #3
    Senior Member Nikonzen's Avatar
    Join Date
    Nov 2014
    Location
    Oklahoma, USA
    Posts
    2,546

    Default Re: The era of low interest rate shall be over soon?

    My gut response would be to look for what oil does...
    Expand your mind or get left behind

  4. #4

    Default Re: The era of low interest rate shall be over soon?

    Quote Originally Posted by Nikonzen View Post
    My gut response would be to look for what oil does...
    To the U.S., it doesn't matter. If oil price recovers, it will help U.S. to achieve the 2% inflation rate target.

    Oil price affects OPEC and non-OPEC oil producing nations substantially. However, oil comsumer countries benefitted low oil price.

    OPEC just finished the meeting this morning and maintained the output. Saudi continues to defiant to the market call to slash output.

  5. #5

    Default Re: The era of low interest rate shall be over soon?

    Quote Originally Posted by Sion View Post
    The Return of HDRI?

    High Dynamic Range Interest?
    Interst rate won't cross 5% unlike those ultra high interest rate in the 90s.

  6. #6
    Senior Member Nikonzen's Avatar
    Join Date
    Nov 2014
    Location
    Oklahoma, USA
    Posts
    2,546

    Default Re: The era of low interest rate shall be over soon?

    In USA we are constantly bombarded with "there is no inflation" yet you look at prices for everything and see they must be lying through their teeth. Everything is way higher with one exception - gas...which is like $1.64 per gallon where I am. Price increases a few years ago were explained as being necessary due to high cost of oil. Funny how there has been no price decrease with oil being low for many months now.

    It just seems to me that USA is not so much on it's feet like they say...maybe for a smaller segment of population at the top and corporations but for the man in the street he will tell you prices are astronomical and his paycheck has been flat for many years now. Many cannot even get a loan and or credit card and most even if they can will pay 20-24% on them.Not to mention we must increasingly try to dodge fees and taxes and fines everywhere we turn, dodge potholes and suspension repair bills everywhere we drive, and even dodge bullets from crazy gunmen from time to time (somewhat exaggerated but not like the 70's)
    Last edited by Nikonzen; 6th December 2015 at 12:48 AM.
    Expand your mind or get left behind

  7. #7

    Default Re: The era of low interest rate shall be over soon?

    My dad told me he had to pay for 10% interest for his car loan.

    Sent from my Lenovo S930 using Tapatalk

  8. #8

    Default Re: The era of low interest rate shall be over soon?

    how would this affect sibor rate? now it is 1.07...few yrs back was 0.4. I heart pain.
    Objection !!!

  9. #9

    Default Re: The era of low interest rate shall be over soon?

    Quote Originally Posted by ninelives View Post
    how would this affect sibor rate? now it is 1.07...few yrs back was 0.4. I heart pain.
    It will continue to go up even further. Prepare for the rate hike.

  10. #10

    Default

    Quote Originally Posted by Jedi View Post

    It will continue to go up even further. Prepare for the rate hike.
    If our govt want to depress property prices some more, then they will adopt the hike.

  11. #11

    Default Re: The era of low interest rate shall be over soon?

    Quote Originally Posted by donut88 View Post
    If our govt want to depress property prices some more, then they will adopt the hike.
    The government has already adopted it some time ago through the TDSR. The interest rate used is 3.5%. The government wanted to make sure that property borrowers can afford at interest rate of 3.5%. If interest rate goes beyond 3.5%, then it is another story.

  12. #12

    Default Re: The era of low interest rate shall be over soon?

    SIBOR rate has risen the next day in Singapore after the Fed announced the rate hike.

    2016 will be a turbulent year.

  13. #13
    Senior Member Nikonzen's Avatar
    Join Date
    Nov 2014
    Location
    Oklahoma, USA
    Posts
    2,546

    Default Re: The era of low interest rate shall be over soon?

    Look at junk bonds going south...there is your American shale producers who junked out to keep a float. The piper is signalling...why you think Congress is going to open up domestic market for USA? Hahaha Extract every penny...Oh well good for SG as long as NE Asia Pacifica grows and needs those oil tankers coming through the straits. Every thing probably gets more expensive from here on out??? Oil???
    Last edited by Nikonzen; 20th December 2015 at 04:11 AM.
    Expand your mind or get left behind

  14. #14
    Senior Member Sion's Avatar
    Join Date
    Jan 2004
    Location
    新天地
    Posts
    4,768

    Default Re: The era of low interest rate shall be over soon?

    Quote Originally Posted by Yappy View Post
    My dad told me he had to pay for 10% interest for his car loan.
    The interest rate on car loan is not purely driven by economics.

    More importantly it is motivated by social and environmental factors.
    Last edited by Sion; 20th December 2015 at 11:22 AM.

  15. #15

    Default Re: The era of low interest rate shall be over soon?

    Quote Originally Posted by Yappy View Post
    My dad told me he had to pay for 10% interest for his car loan.

    Sent from my Lenovo S930 using Tapatalk
    10%? Are you sure? Which bank did you take up?

    Check out car loan rates here

    http://www.moneysmart.sg/car-loan None of them is charging 10%.

  16. #16

    Default

    He must have taken the in house loan where by he can pay less then 50% down payment.
    Canon 30D, G11, 50 f1.8II, 10-22 f3.5-4.5, 24-70 f2.8L, 70-200 f2.8L IS, EX580II

  17. #17

    Default

    Quote Originally Posted by Jedi View Post

    10%? Are you sure? Which bank did you take up?

    Check out car loan rates here

    http://www.moneysmart.sg/car-loan None of them is charging 10%.
    He's referring to the past lah, not the present!!!

  18. #18

    Default Re: The era of low interest rate shall be over soon?

    Quote Originally Posted by donut88 View Post
    He's referring to the past lah, not the present!!!
    Ha ha, "shoot first and ask questions later" syndrome.

    My first car loan was 7% per annum. I took 3 year loan which worked out to 21% of the loan amount. Back then nobody ever took 7 or 10 year loan, 5 year was max.

  19. #19

    Default

    Quote Originally Posted by sgciti55 View Post

    Ha ha, "shoot first and ask questions later" syndrome.

    My first car loan was 7% per annum. I took 3 year loan which worked out to 21% of the loan amount. Back then nobody ever took 7 or 10 year loan, 5 year was max.
    Of coz la. With high interests rate, who will take long tenure term? Faster clear loan, the better it is

  20. #20

    Default

    Quote Originally Posted by Jedi View Post
    10%? Are you sure? Which bank did you take up? Check out car loan rates here http://www.moneysmart.sg/car-loan None of them is charging 10%.
    He's not wrong. Depends on how you look at it.

    Car loans interest, unlike housing loans, are not calculated based on remaining the principal. It's applied to the full loan for the entire tenure.

    Means a 2%pa interest for 7 years will incur 14% in total whereas the same 2%pa for a housing loan is effectively 1%pa.

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •