OCBC raises rate

OCBC raises rate

SINGAPORE (AFP): The Overseas-Chinese Banking Corporation (OCBC) Bank, one of Singapore's big four local banks, announced yesterday it is raising its prime lending rate by a quarter of a percent to 5.75 percent.

OCBC was the third major local bank to hike its prime lending rate, following the United Overseas Bank (UOB) and Overseas Union Bank (OUB) which raised their rates last week.

The new rate will be effective from Tuesday, the bank said. Although no reason was given for the increase, the move was seen as a reaction to the recent U.S. interest rate hike, and a rising domestic demand for funds.

The remaining major local bank, the Development Bank of Singapore (DBS) which charges a prime rate of 5.25 percent, is expected to follow suit.