23-04-2012, 10:13 PM
(23-04-2012, 10:02 PM)freedom Wrote: honestly, IIRC, pre-2007, interest rate was always around 5% (borrowing).
http://www.tradingeconomics.com/singapore/interest-rate
I might be wrong but the historical chart shows the SIBOR not hitting 4% even in pre-2007.
Raising interest rates just to curb inflation will have an adverse effect if business conditions are not yet back to normalised optimistic terms.. and I don't think raising interest rates (even if it's possible) is the best to go given the current global conditions..