DAILY NEWS

Daily News – 17 June 2022 (Fri)

Singapore Real Estate

ST Explains: How will rising rates in the US affect housing loans and property prices in Singapore?
Singapore – The United States central bank has raised benchmark interest rates by 0.75 percentage point – the biggest increase since 1994. The decision to hike by what Federal Reserve chair Jerome Powell called an “unusually large” amount came as inflation in the US hit 8.6 per cent in May, a level not seen in more than 40 years.
https://www.straitstimes.com/business/economy/st-explains-how-rising-rates-in-the-us-will-affect-borrowing-costs-in-singapore

Mercatus Co-operative hires JP Morgan for strategic review, seen to have bundled 4 Singapore retail assets for potential sale
First, it was NTUC Income Insurance that began a sale process for its Income At Raffles office building in Collyer Quay. Then, another co-operative in the NTUC stable, Mercatus, is now said to have bundled 4 of its retail properties in Singapore for sale.
https://www.businesstimes.com.sg/real-estate/mercatus-co-operative-hires-jp-morgan-for-strategic-review-seen-to-have-bundled-4

Singapore Economy

Singapore exports up by 12.4% in May on year-ago low base
Singapore’s key non-oil domestic exports (NODX) jumped in May, on a year-ago low base, trade agency Enterprise Singapore (ESG) reported on Friday (Jun 17). NODX growth surged to 12.4 per cent year on year, from 6.4 per cent in the month before – higher than the median estimate of 7.5 per cent in a Bloomberg poll.
https://www.businesstimes.com.sg/government-economy/singapore-exports-up-by-124-in-may-on-year-ago-low-base

Singapore households, businesses to brace for interest rate ‘shock’; Fed hike to slow Asean recovery: Economists
The United States’ Federal Reserve’s historic rate hike will dampen growth in Singapore and Asean, while the higher interest rates will put pressure on households with mortgages and businesses looking to borrow.
https://www.businesstimes.com.sg/government-economy/singapore-households-businesses-to-brace-for-interest-rate-shock-fed-hike-to-slow

Fed rate hikes raise threat of US recession, higher borrowing costs in S’pore
Singapore – The biggest Federal Reserve rate hike in 28 years portends higher costs of borrowing and will likely depress consumer sentiment, potentially sending the US economy into a sharp slowdown, if not a recession.
https://www.straitstimes.com/business/economy/fed-rate-hikes-raise-threat-of-us-recession-higher-borrowing-costs-in-singapore

Sharp rate hikes will raise economic risks
The United States Federal Reserve’s pivot to hiking the Fed funds rate by 75 basis points on Wednesday to a range of 1.5 to 1.75 per cent reflects its heightened urgency to tame inflation. But it also raises the risks of more financial market turmoil, a sharper economic slowdown and even recession.
https://www.straitstimes.com/opinion/st-editorial/the-straits-times-says-sharp-rate-hikes-will-raise-economic-risks