Chee Hong Tat on Singapore’s borrowing costs and credit availability

Interest rates in Singapore have not risen by as much as those of other jurisdictions. This reflects the country's strong fiscal fundamentals, which have supported continued healthy demand for Singapore Government Securities (SGS). Singapore's borrowing costs have remained broadly in line with historical levels - the prevailing 10-year SGS yield stands at 2.5 per cent. Broader domestic credit conditions remain conducive, with the Singapore Overnight Rate Average at around 1.2 per cent. Credit growth remains firm, credit quality is sound and banks are well-capitalised. Deputy Chairman of the Monetary Authority of Singapore Chee Hong Tat gave this update in reply to an MP’s question in parliament on Wednesday (Oct 7). He also said businesses and households generally remain in a sound financial position to manage higher borrowing costs.