The prime rate would be kept unchanged at 8 percent for the 11th consecutive month as part of the ongoing effort to help commercial banks lower lending interest rates, the State Bank of Vietnam said on Sept. 27.
The refinancing and overnight rates for electronic payments on the interbank market would also remain at 8 percent and the discount rate at 6 percent, the bank said.
Since the central bank gave the go-ahead for a negotiable interest rate mechanism in March, the prime rate had not had direct impact on the market lending interest rate that it used to, analysts said.
However, the benchmark interest rate was seen as a way of signalling the monetary policy direction of the central bank at any given period.
The Government has ordered commercial banks to cut lending rates to 12 percent and deposit rates to 10 percent in order to help enterprises access credit.
Prevailing loan rates now range between 12-15 percent.
Many banks expected Circular No13's review to result in important changes that would loosen credit requirements and help banks have more capital on hand to make money and reduce interest rates./.
The refinancing and overnight rates for electronic payments on the interbank market would also remain at 8 percent and the discount rate at 6 percent, the bank said.
Since the central bank gave the go-ahead for a negotiable interest rate mechanism in March, the prime rate had not had direct impact on the market lending interest rate that it used to, analysts said.
However, the benchmark interest rate was seen as a way of signalling the monetary policy direction of the central bank at any given period.
The Government has ordered commercial banks to cut lending rates to 12 percent and deposit rates to 10 percent in order to help enterprises access credit.
Prevailing loan rates now range between 12-15 percent.
Many banks expected Circular No13's review to result in important changes that would loosen credit requirements and help banks have more capital on hand to make money and reduce interest rates./.
