While the banks would be the most sensitive to rate cuts, the cuts would also suggest that inflation is under control and that corporates can start picking up any investments in the business again, Sinha notes.
Singapore banks are likely to remain “stronger for longer” amid expectations of rate cuts, says CLSA analyst Neel Sinha. CLSA is now expecting rate cuts to take place a bit earlier than the fourth quarter of this year.
All three banks have reported record profits in recent years due to higher net interest margins (NIMs) due to the higher interest rate environment.
