15-08-2023, 08:14 PM
15-08-2023, 08:28 PM
What Is Singapore Overnight Rate Average (SORA)
As the once-popular Singapore Inter-bank Offered Rate (SIBOR) will be discontinued after 31 December 2024, most new home loan packages on floating rates are benchmarked to the SORA.
The SORA, which is measured over a compounded period of 1-month, 3-month, or 6-month, is considered a backward-looking interest rate. It uses the previous day’s borrowing transactions in the unsecured overnight interbank SGD cash market in Singapore between 8 am and 6.15 pm to determine the rate.
This is in contrast to the SIBOR, which is a forward-looking interest rate that is determined based on estimates from Singapore banks.
As the once-popular Singapore Inter-bank Offered Rate (SIBOR) will be discontinued after 31 December 2024, most new home loan packages on floating rates are benchmarked to the SORA.
The SORA, which is measured over a compounded period of 1-month, 3-month, or 6-month, is considered a backward-looking interest rate. It uses the previous day’s borrowing transactions in the unsecured overnight interbank SGD cash market in Singapore between 8 am and 6.15 pm to determine the rate.
This is in contrast to the SIBOR, which is a forward-looking interest rate that is determined based on estimates from Singapore banks.