The govt cannot raise interest rates like that because once you raise it js very difficult to cut and people will be unhappy.
Right now if you not happy with CPF rates you can move the money to CPF special account, Govt treasuries, SSB ...for higher rates.
I don't see a problem.
There is a reason why they are already higher than domestic interest rates in normal times.
It’s so they won’t have to rise further in times like these. As sgbuffett mentioned, CPF rates are upward sticky, very hard to impose CPF interest rate decrease.
Don't forget that if CPF interest rates rise, those people on HDB loans also pay more interest. Why is it when Fed interest rate was near zero, all these 1M65 boomers diam diam and didn't complain they received too much interest from CPF?
(02-02-2023, 10:01 AM)starbugs Wrote: [ -> ]Don't forget that if CPF interest rates rise, those people on HDB loans also pay more interest. Why is it when Fed interest rate was near zero, all these 1M65 boomers diam diam and didn't complain they received too much interest from CPF?
You forget the 2.5% leh.
It is 5.1% taking your own CPF $$$ to buy house if you are using CPF housing loan.
Got ppl complain but no use.
It is the return the CPF $$$.