This is a drastic increase from the end of last year where three-year fixed rates were at 1.15%.
Despite this, the interest rates for fixed deposits are not increasing.
Basically, it now costs more to borrow money from banks. The biggest impact would be on lower income Singaporeans who are trying to pay for their flats. Now they have to pay more for their housing, this is on top of the already increasing cost of living. Some may no longer be able to afford their mortgage.
Additionally, they will be getting less money from saving in a bank.
Singaporeans cannot do anything about it.
We now have to fight rising interest rates and foreigners who are able to easily afford multiple condominiums in Singapore. We are definitely on the losing end.