They add, however, that the cuts to come would have a negative effect on net interest margins
THE US Federal Reserve’s move to cut interest rates by 50 basis points (bps) was at the higher end of estimates, but is unlikely to have a significant impact on the Singapore banks, say analysts.
They say it is because the cut was within an expected range, and the negatives have already been largely priced in.
Thilan Wickramasinghe, head of research at Maybank Securities Singapore, said, however: “Over time, cuts would have a negative effect on net interest margins (NIMs).
