The Singapore overnight rate, known as SORA (Singapore Overnight Rate Average), is the volume-weighted average interest rate at which banks lend Singapore dollars to each other overnight in the unsecured interbank market, published daily by MAS.
Not financial advice. All figures for educational reference only. Data as at July 2026.
Last updated: July 2026.
Key Takeaways
- SORA is computed by the Monetary Authority of Singapore from actual overnight interbank borrowing transactions traded between 8am and 6.15pm each business day.
- MAS publishes SORA the next business day at 9am, and it has fully replaced SIBOR as Singapore’s key interest rate benchmark.
- Most floating-rate home loans and business loans in Singapore now reference Compounded SORA over a 1-month or 3-month period, not the daily overnight print.
- Because SORA is transaction-based rather than a bank survey, it is harder to manipulate than the old SIBOR panel-quote system.
- SORA moves closely with the US Fed Funds Rate and MAS monetary policy stance, since SGD short-term rates are influenced by the exchange-rate-centred policy band.
What Is the Overnight Rate (SORA)?
SORA is the benchmark that replaced SIBOR and SOR as Singapore’s primary interest rate reference from 2021 onward. Rather than being based on a panel of banks submitting estimated borrowing costs, SORA is calculated directly from real, executed overnight unsecured SGD interbank loan transactions. Reporting banks submit data on every eligible transaction booked in the trading window, and MAS computes the volume-weighted average rate, meaning larger transactions have proportionally more influence on the final published figure.
This transaction-based design makes SORA more transparent and harder to game than SIBOR, which is why global regulators pushed for the shift to “risk-free rate” benchmarks like SORA, SOFR (US), and SONIA (UK) after the 2012 Libor manipulation scandal.
How Does the Overnight Rate Work in Singapore?
| Term | Description |
|---|---|
| SORA (daily) | The actual overnight rate for a single business day |
| 1M Compounded SORA | Daily SORA rates compounded over the trailing 1-month period |
| 3M Compounded SORA | Daily SORA rates compounded over the trailing 3-month period |
| SORA Index | A running index value used to calculate compounded rates precisely for loan contracts |
| Publication time | Next business day, 9am, on the MAS website |
Source: MAS SORA methodology document and SORA Interest Rate Benchmark page, 2026.
In practice, most Singapore home loan packages reference 1M or 3M Compounded SORA plus a bank spread, rather than the raw daily print, because compounded SORA smooths out day-to-day volatility and gives borrowers a more predictable repricing schedule.
Overnight Rate Example
Suppose 3M Compounded SORA is quoted at 2.80% and a bank offers a home loan at “3M SORA + 0.65%.” The borrower’s effective mortgage rate for that quarter would be approximately 3.45% per annum. If SORA drifts down to 2.50% over the following quarter as MAS eases its policy stance, the same loan reprices to roughly 3.15% at the next reset date — without the borrower needing to refinance, since the loan automatically tracks the published benchmark.
Advantages of Understanding the Overnight Rate
- Predicts mortgage repricing. Knowing where SORA is trending helps borrowers anticipate whether their next loan reset will be higher or lower.
- Explains T-bill and SSB movements. Singapore Savings Bond and T-bill yields tend to track the direction of SORA and broader SGD rate expectations.
- Transparent and hard to manipulate. Because it’s transaction-based, SORA gives borrowers and savers more confidence in the benchmark’s integrity than the old SIBOR system.
- Useful for comparing loan packages. Understanding the SORA spread lets borrowers directly compare “true cost” across banks offering different markups over the same benchmark.
Risks and Limitations
- Backward-looking, not predictive. Compounded SORA is calculated from realised historical transactions, so it tells you what happened, not what will happen next quarter.
- Rate resets can hurt during rising-rate periods. Borrowers on SORA-pegged loans have no protection if rates rise sharply between reset dates.
- Compounding mechanics are complex. Many borrowers don’t fully understand how the SORA Index converts daily rates into a compounded figure, making it hard to independently verify a bank’s calculation.
- Correlated exposure. Borrowers with both a SORA-pegged mortgage and SORA-linked savings products are exposed to the same rate cycle on both sides, which can compound cash-flow stress in a downturn.
Overnight Rate (SORA) vs SIBOR
| Aspect | SORA | SIBOR |
|---|---|---|
| Basis | Actual executed overnight transactions | Bank-submitted rate estimates |
| Status in 2026 | Primary SGD benchmark | Discontinued for new loans since 2024 |
| Manipulation risk | Low — transaction-based | Higher — survey-based |
| Publication | Daily by MAS, 9am next business day | Formerly daily by ABS |
| Used in new loans? | Yes, standard for new floating-rate loans | No — legacy loans only |
The Bottom Line
SORA is now the backbone of Singapore’s interest rate system, quietly setting the cost of everything from home loans to T-bill yields. Tracking its trend — not just the daily print — is the most useful way for borrowers and savers to anticipate where their loan repayments or fixed-income yields are headed next.
Frequently Asked Questions
What is the overnight rate in Singapore?
The Singapore overnight rate, or SORA, is the volume-weighted average rate of unsecured overnight SGD interbank borrowing transactions, published daily by the Monetary Authority of Singapore.
How is SORA different from SIBOR?
SORA is calculated from actual executed transactions, while SIBOR was based on estimated rates submitted by a panel of banks. SORA has replaced SIBOR as the standard benchmark for new Singapore dollar loans since 2024.
How does SORA affect my home loan?
Most floating-rate home loans in Singapore are priced as a spread over 1-month or 3-month Compounded SORA, so your mortgage rate moves up or down as SORA trends change at each reset date.
Where can I check the current SORA rate?
MAS publishes the daily SORA rate and the SORA Index on its official website each business day at 9am.
Does SORA affect Singapore Savings Bonds and T-bills?
Indirectly, yes. SORA reflects the general level of SGD short-term interest rates, and SSB and T-bill yields tend to move in the same broad direction as SORA over time.
Is SORA the same every day?
No. The daily SORA print can fluctuate slightly based on actual overnight borrowing activity, which is why most loans reference a smoothed compounded average rather than the single-day rate.