The impact of higher interest rates on regional banks and property

SINGAPORE (Oct 4): At its last meeting in September, the US Federal Reserve hiked rates by 25bps and warned that rate increases are likely to persist well into next year.

With US headline inflation hovering above 2.5%, unemployment rate at below 4% and oil prices creeping up, the Fed has sufficient reasons to take its funds rate higher to fend off overheating risks.

This means USD rates are poised to drift higher as monetary policy turns restrictive over the coming quarters.

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