So lesser people will borrow money to buy things. Inflation usually means that there is more demand than supply, thus causing prices to increase.īy increasing interest rates, this makes borrowing more expensive. Although the core inflation rate for Singapore has remain flat at 5.1% in Nov, it is still well above the 2% inflation target. Simple answer is because inflation is rising. If you decide to redeem after the 1st year, you will still earn $284. The 1st year’s interest rate is at 2.84%.

If you invest $10,000, and hold it to Maturity at the 10th year, you would have earned $2,988. The interest rate for Singapore Savings Bond (SSB) Feb 2023 (SBFEB23 GX23020X) is at 2.97% p.a. if held to maturity.