bank interests at current levels still consider very low. 2.7-3%
is still peanuts, there was a time I walk in to Sing Finance and
check out the FD for 1 yr at 6%, wow that was the highest I ever
saw.
Personally I feel the economy will still cont to grow and expand.
Reasoning is now there's a war going on between all the banks to
outdo each other to attract savers.
Savings a/c are considered liabilities to banks since they have to
pay interests on those deposits. Why would banks be fighting over
savings depositors and offering so many goodies if there wasn't any
strong demand at all for loans? 
If there a demand for loans means people and businesses are
spending or at least are more willing to spend now than compares to
2yrs ago. More spending == creating demand for goods and services
== more job creation.
I think STI will hit 2500 in 2006 