Another one of my random charts. It shows how closely the interest rates in Singapore track those in the US. It's not a matter of if but when the Fed decides to raise rates. Likely to be in 2011 or 2012. That means domestic interest rates will rise in tandem. Wonder how many homeowners who piled into the recent property frenzy will lose their shirts when that happens.
The close correlation is because Singapore's monetary policy is centred on the exchange rate. The "Impossible Trinity" means that we effectively import US monetary policy since capital is free to flow in and out of Singapore (and MAS manages the exchange rate).
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