Interest rates in Singapore are expected to hit their lowest level, with the US Federal Reserve likely to cut rates, according to a report by the Straits Times on Wednesday, citing analysts.

According to a senior foreign exchange strategist at UOB, Peter Chia, the Singapore Overnight Rate Average, or SORA, could bottom out around 1% before rising to 1.39% by the end of the year, the report said.

This comes after the US Federal Reserve cut interest rates in the US in September, October and December last year, the report noted.

Meanwhile, gross domestic product, or GDP, is expected to book a 2.6% growth during the year, according to latest UOB forecasts, as cited by the report.

Concurrently, UOB is expecting two further Federal Reserve cuts of 25 basis points each in 2026, the report added.

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