Koh adds that the European Central Bank has also cut the interest rate on its main refinancing operations by 25 bps to 4.25% in June.
In his July 2 sector report, UOB Kay Hian analyst Jonathan Koh has maintained his “overweight” call on Singapore REITs (S-REITs), as the sector has “weathered the sell-down” caused by interest rates staying higher for longer.
He notes that major banks have been cutting rates in recent months, with the Swiss National Bank cutting its main policy rate by 25 basis points (bps) to 1.5% in March and the Bank of Canada lowering its overnight rate by 25 bps to 4.75% in June, the first G7 country to cut interest rates.
