SINGAPORE (June 4): CIMB Bank Singapore announced Wednesday (June 3) that it will reduce its deposit rates and cost of deposits. This will allow the bank to maintain its floor rate at 0.1% for its existing consumer mortgage loans pegged to the one-month and three-month Singapore Interbank Offered Rate (SIBOR) and three-month Swap Offer Rate (SOR).

The move comes as the bank factors in the market’s declining cost of deposits, which allowed the bank to reduce its deposit rates and cost of deposits to maintain its flor rate at 0.1%, says Victor Lee, CEO of CIMB Bank Singapore.

“With a volatile mortgage interest rate market, we are offering for a limited time only for our impacted Singapore residential mortgage loan customers either a two-year fixed rate package of 0.9% or a 3-year fixed rate loan package of 1.10% to mitigate the fluctuations of the current volatile interest rates environment… We are offering the lowest fixed rates for

our existing customers on the SIBOR and SOR packages as of today,” Lee adds.

As at June 2, the one-month SIBOR is at 0.24%, and the three-month SIBOR, at 0.55%. The three-month SOR is at 0.18%.