The US Federal Reserve cut the overnight borrowing rate by 50 basis points to 4.75% to 5%. REIT ETF Issuers believe this will benefit S-REITs, with potential for further rally.
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The US Federal Reserve cut the overnight borrowing rate by 50 basis points to 4.75% to 5%. REIT ETF Issuers believe this will benefit S-REITs, with potential for further rally.
Key Takeaways
The US Federal Reserve cut the overnight borrowing rate by 50 basis points to 4.75%-5%, with further cuts planned, benefiting S-REITs through lower borrowing costs and potential for further rally.
REIT ETF issuers highlight that lower interest rates will boost S-REITs’ profits and distributable income, enabling more accretive acquisitions and enhancing growth.
The favorable rate environment and easing inflation support the Singaporean economy and S-REITs, with balanced supply and demand in various REIT sectors and resilience in retail and hotel REITs.
Following recent softening in jobs data and inflation, the US Federal Reserve made its first rate cut in four years, lowering the overnight borrowing…