Policy Rates

East Asian central banks and monetary authorities use policy rates as a monetary tool for controlling inflation, determining day-to-day liquidity operations, and for determining other market rates. Singapore and Hong Kong, China focuses on exchange rates as the prime monetary tool.

Long Term Yields

The yield of long-term local currency bonds is used as the risk free benchmark for each market.

Short Term Interest Rates

Short-term reference rates are the average rates at which selected commercial banks lend to other banks. Other short-term interest rates are commonly calculated by banker’s associations.

Other Market Rates

Several reference rates are used by markets to facilitate bank lending and deposits, and repurchase market transactions.

USD denominated Securities

A reference rate is the average interest rate of a common market group, published for use by all market participants. The most common use of reference rates is to fix floating-rate agreements.

The most widely used reference rate is the London Interbank Offered Rate (LIBOR), calculated by the British Banker's Association (BBA). This is the rate of interest at which banks borrow USD funds from other banks, in marketable size, in the London interbank market.
The Singapore Interbank Offered Rate (SIBOR) is the equivalent of LIBOR for USD loans among interbank participants in Asian time zones. It is collated by the Association of Banks in Singapore (ABS).

For more specific information on reference rates used by monetary authorities and banks in each of the East Asian markets, please refer to market home pages.