1M and 3M SORA: Key Interest Rate Benchmarks

**1M and 3M SORA: Key Interest Rate Benchmarks in Singapore** SORA (Singapore Overnight Rate Average) is a key interest rate benchmark in Singapore, used to determine the cost of borrowing for financial products like loans and mortgages. The 1M and 3M SORA refer to the average overnight interest rates over a 1-month (1M) or 3-month (3M) period, respectively. These rates reflect the actual transaction costs in the money market and are published by the Monetary Authority of Singapore (MAS). - **1M SORA**: This is the average of overnight rates for the past 30 days. It’s commonly used in shorter-term financial products, offering a rate that can fluctuate more frequently in response to market conditions. - **3M SORA**: This represents the average of overnight rates over the past 90 days, providing a smoother, more stable rate over a slightly longer term compared to the 1M SORA. Both benchmarks are used by banks to set interest rates for loans and mortgages, particularly in floating rate loans. These rates are seen as transparent and reflective of actual market conditions, offering borrowers an alternative to traditional benchmarks like SIBOR (Singapore Interbank Offered Rate). [url]https://iqrate.io/understanding-singapores-compounded-1-month-and-3-month-sora-rates[/url]

This topic was started by Dean Smith.