[sgbuffett]

It is actually a welcome move as viewed by many people especially those money savers.  The interest rates as far as they are concerned are ridiculously low and many have no interest at all to save any money.  For some years now,  they are spending money like water but saw no effect on inflation at all nor making any dent in the interest rate. 

The stock market,  on the other hand,  has gone crazy,  making no sense for many who just sit at the fence watching the "idiots" playing stock among themselves, pushing the index sky-high until it crashes.  Also,  today's stock markets among many countries has mostly decoupled.  We see, on the one hand, the US stock market making its way the roof stubbornly and the Asian markets struggling only to move sideways.  This is really not a very healthy investment market.    Something has to be done.

Let's hope the US will wake up and make an effort to increase the interest rates to arrest the worsening market condition and correct its "mistakes" once and for all.  The Bernanke's  dream of taming the recession with QE is only an experiment and is not a solution for solving recession turning into long term stagnation.

Forget bank interest it will lag inflation and erode your $$.
Even if the interest rate go up it is below inflation.

If die die want to earn fixed interest CPF special account is the best bet at 4%.