SORA Index Monitor
Monitor the Singapore Overnight Rate Average (SORA) index in real-time
SORA Rates Trend
Recent SORA Rates
| Date | SORA (%) | Index | 1M (%) | 3M (%) | 6M (%) |
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About SORA (Singapore Overnight Rate Average)
The Singapore Overnight Rate Average (SORA) is the official interest rate benchmark for Singapore. It was introduced by the Monetary Authority of Singapore (MAS) and the Singapore Foreign Exchange Market Committee (SFEMC) in July 2005 as a transparent and robust benchmark for the Singapore Dollar interest rate market. SORA reflects the average rate at which banks borrow and lend Singapore Dollars on an unsecured overnight basis in the wholesale market. It is calculated based on actual transaction data, making it a highly reliable and representative benchmark for short-term interest rates in Singapore.
SORA has become increasingly important in Singapore's financial markets, serving as the reference rate for various financial products including floating rate notes, interest rate swaps, and other derivatives. In 2020, MAS announced the transition from the Singapore Interbank Offered Rate (SIBOR) to SORA as the primary interest rate benchmark, aligning with global reforms to enhance the robustness and reliability of financial benchmarks.
This tool provides real-time access to SORA rates, helping investors, financial professionals, and businesses stay informed about current interest rate trends in Singapore. The data is sourced from the Monetary Authority of Singapore and is updated daily after market close.
How to Use This Tool
- The tool automatically loads the latest SORA rates when you open the page
- View the current Compounded SORA rate and SORA Index in the main display
- Scroll down to see historical rates in the Recent SORA Rates table
- Click the "Refresh Data" button to manually update the rates
- The data is cached for 1 hour to ensure fast loading while maintaining accuracy
- All rates are displayed as annual percentages
Understanding SORA: Key Terms & Concepts
SORA (Singapore Overnight Rate Average)
SORA is the volume-weighted average rate of all unsecured overnight interbank Singapore Dollar transactions brokered in Singapore between 9am and 6:15pm. It represents the cost of borrowing Singapore Dollars on an overnight basis and serves as the primary interest rate benchmark for Singapore.
Compounded SORA
Compounded SORA is calculated by compounding daily SORA rates over a specific period (typically 1 month, 3 months, or 6 months). This measure is commonly used in financial contracts such as floating rate loans and bonds, as it reflects the cumulative effect of daily rate changes over the contract period.
SORA Index
The SORA Index is a reference index that tracks the cumulative effect of compounding daily SORA rates. Starting from an initial value of 1.00 on July 1, 2005, the index increases daily based on the SORA rate. It provides a convenient way to calculate interest payments and is widely used in financial instruments.
Benchmark Rate
A benchmark rate is a standard interest rate used as a reference point for pricing financial products. SORA serves as Singapore's benchmark rate, replacing the older SIBOR (Singapore Interbank Offered Rate) benchmark.
Overnight Rate
An overnight rate is the interest rate at which financial institutions lend or borrow funds on an overnight basis. These short-term rates are crucial indicators of liquidity conditions in the banking system and form the foundation for longer-term interest rates.
MAS (Monetary Authority of Singapore)
MAS is Singapore's central bank and financial regulatory authority. It is responsible for administering and publishing SORA rates, ensuring the integrity and reliability of this important financial benchmark.
Common Use Cases for SORA
- ✓ Banks and financial institutions use SORA to price floating rate loans and mortgages
- ✓ Investors track SORA to understand interest rate trends and make informed investment decisions
- ✓ Businesses reference SORA when negotiating loan terms with banks
- ✓ Financial analysts monitor SORA to assess monetary policy conditions in Singapore
- ✓ Treasury teams use SORA for cash flow forecasting and interest rate risk management
- ✓ Real estate professionals track SORA trends to anticipate changes in mortgage rates
- ✓ Corporate finance teams reference SORA when evaluating debt financing options
- ✓ Portfolio managers use SORA as an input for fixed income valuation models
- ✓ Economic researchers analyze SORA trends to study Singapore's financial market dynamics
- ✓ Financial technology companies integrate SORA data into their financial planning tools
Real-World Examples
Example 1: Floating Rate Home Loan
John is considering a home loan with a floating interest rate priced at "3-Month Compounded SORA + 0.75%". If the 3-Month Compounded SORA is currently 2.85%, his loan interest rate would be 3.60% (2.85% + 0.75%). As SORA changes over time, his loan interest rate will adjust accordingly every three months.
Example 2: Corporate Bond Pricing
A Singapore corporation issues a floating rate bond with coupon payments linked to "1-Month Compounded SORA + 1.50%". The company and investors use the daily SORA Index to calculate the exact interest amount owed at each payment date, ensuring transparent and fair pricing.
Example 3: Interest Rate Swap
A company with a fixed-rate loan wants to benefit from potentially lower floating rates. They enter into an interest rate swap where they pay a floating rate based on 6-Month Compounded SORA and receive a fixed rate. SORA serves as the transparent benchmark for calculating the floating leg of this swap.
Example 4: Investment Decision Making
An investor is deciding between a fixed deposit and a money market fund. By monitoring SORA trends, they can better understand the direction of short-term interest rates and make an informed decision about which investment vehicle may offer better returns.
Important Notes & Considerations
Data Updates: SORA rates are published daily by MAS after market close (typically around 9:00 AM SGT the following business day). This tool caches data for 1 hour to provide fast access while ensuring reasonable freshness. Click "Refresh Data" to manually fetch the latest rates.
Non-Business Days: SORA rates are not published on weekends and Singapore public holidays. The tool will display the most recent available rate from the last business day during these periods.
Not Financial Advice: This tool is provided for informational purposes only and should not be considered financial advice. Always consult with qualified financial professionals before making investment or borrowing decisions based on interest rate information.
Data Accuracy: While we strive to provide accurate and up-to-date information, we recommend verifying critical data with the official MAS website or your financial institution. Interest rate data is subject to revision and correction by the publisher.
SIBOR Transition: SIBOR (Singapore Interbank Offered Rate) has been phased out, with full discontinuation completed by end of 2024. SORA is now the official replacement benchmark. If you have existing financial contracts that were linked to SIBOR, check with your bank to confirm they have been transitioned to SORA.
Historical Context: SORA rates can vary significantly based on monetary policy, economic conditions, and market liquidity. During periods of economic uncertainty or central bank policy changes, rates may experience higher volatility. Understanding historical trends can provide context for interpreting current rates.
Frequently Asked Questions
What is SORA and why is it important?
SORA (Singapore Overnight Rate Average) is Singapore's primary interest rate benchmark, replacing SIBOR. It reflects the actual cost of overnight interbank borrowing in Singapore Dollars and is used to price various financial products including loans, bonds, and derivatives. Its importance lies in providing a transparent, transaction-based benchmark that accurately reflects market conditions, making it more robust and reliable than previous benchmarks.
How often is SORA updated?
SORA is published daily by MAS on every Singapore business day, typically by 9:00 AM SGT the following day. The rate reflects transactions from the previous business day between 9:00 AM and 6:15 PM.
What is the difference between SORA and Compounded SORA?
SORA is the daily overnight rate, while Compounded SORA is calculated by compounding daily SORA rates over a specific period (such as 1, 3, or 6 months). Compounded SORA is commonly used in financial contracts because it reflects the cumulative interest effect over the contract period, similar to how interest accrues on a loan or deposit.
How does SORA affect my home loan interest rate?
If you have a SORA-pegged home loan, your interest rate is calculated as Compounded SORA plus a spread (e.g., "3-Month Compounded SORA + 0.80%"). When SORA rises, your loan interest rate increases, resulting in higher monthly payments. Conversely, when SORA falls, your interest rate and monthly payments decrease.
Is SORA the same as the bank's prime rate?
No, SORA is a market-based benchmark rate set by interbank transactions, while prime rates are set by individual banks. However, banks may use SORA as a reference when determining their prime rates and other lending rates.
Where does the SORA data come from?
SORA data is calculated and published by the Monetary Authority of Singapore (MAS) based on actual unsecured overnight interbank Singapore Dollar transactions brokered in Singapore. This tool displays data sourced from official MAS publications.
What replaced SIBOR in Singapore?
SORA replaced SIBOR as Singapore's primary interest rate benchmark. The transition from SIBOR to SORA began in 2020 and was completed by the end of 2024, aligning with global reforms to enhance the reliability of interest rate benchmarks.
Can I use this tool for financial planning?
Yes, this tool can help you monitor SORA trends for financial planning purposes, such as understanding potential changes in loan interest rates or evaluating fixed versus floating rate options. However, always consult with qualified financial advisors before making significant financial decisions.
Why is there a delay in SORA data?
SORA rates are published the next business day because MAS needs time to collect, verify, and calculate the rate based on actual transactions from the previous day. This ensures accuracy and reliability of the benchmark.
How does SORA compare to interest rate benchmarks in other countries?
SORA is similar to other reformed risk-free rate (RFR) benchmarks globally, such as SOFR in the United States, SONIA in the United Kingdom, and €STR in the Eurozone. All of these benchmarks are based on actual transactions rather than surveys, making them more robust and transparent.
What factors influence SORA rates?
SORA rates are influenced by several factors including MAS monetary policy decisions, market liquidity conditions, overall credit demand, global interest rate trends, and economic conditions in Singapore and the region. During periods of tight liquidity or economic uncertainty, SORA may rise; during periods of ample liquidity, it may fall.
Is SORA data available for historical periods?
Yes, historical SORA data is available dating back to July 2005 when SORA was first introduced. This tool displays recent rates, and complete historical datasets can be accessed through the official MAS website for in-depth analysis.