The State Bank of Vietnam (SBV) has announced a reduction in keyinterest rates at credit institutions and foreign bank branches,applicable from March 13.
Under the decision, the refinancinginterest rate is lowered to 14 percent from 15 percent per annum, theovernight rate in the inter-bank electronic payment is reduced to 15percent from 16 percent, while the discounting rate is cut by onepercentage point to 12 percent.
The SBV also decided to reducethe maximum VND mobilising interest rate per year to 5 percent from 6percent for demand and term deposits with a term below one month and to13 percent from 14 percent for term deposits over one month. The maximumVND mobilising rate is at 13 percent per year, down by one percentagepoint.
Local people's credit funds are exceptionally permittedto apply the maximum VND mobilising rate of 13.5 percent per year, a 1percent decrease from 14.5 percent.
At a monthly Governmentmeeting that took place on March 6, SBV Governor Nguyen Van Binh saidkey interest rates would be lowered by 1 percentage point and thedeposit interest rate ceiling at credit institutions would be alsoreduced by 1 percent age point. As a result, the basic interest rate isat 8 percent, down from 9 percent.
Over the several pastconsecutive months, inter-bank interest rates have fluctuated from 7percent to 14 percent per year, depending on the term, and the overnightinter-bank rate stood at 7-8 percent. The highest rate for one monthwas also at 13-14 percent. The rates showed the improvement in liquidityof banks.
It is possible to cut the deposit interest rate to 10percent by late this year, if all favourable elements to reduceinflation are in place.
Many banks acted quickly following the Governor’s message.
Commercialbanks have prepared to cut lending rates as part of their commitmentwith the SBV in facilitating business access to capital sources forproduction and business.-VNA
Under the decision, the refinancinginterest rate is lowered to 14 percent from 15 percent per annum, theovernight rate in the inter-bank electronic payment is reduced to 15percent from 16 percent, while the discounting rate is cut by onepercentage point to 12 percent.
The SBV also decided to reducethe maximum VND mobilising interest rate per year to 5 percent from 6percent for demand and term deposits with a term below one month and to13 percent from 14 percent for term deposits over one month. The maximumVND mobilising rate is at 13 percent per year, down by one percentagepoint.
Local people's credit funds are exceptionally permittedto apply the maximum VND mobilising rate of 13.5 percent per year, a 1percent decrease from 14.5 percent.
At a monthly Governmentmeeting that took place on March 6, SBV Governor Nguyen Van Binh saidkey interest rates would be lowered by 1 percentage point and thedeposit interest rate ceiling at credit institutions would be alsoreduced by 1 percent age point. As a result, the basic interest rate isat 8 percent, down from 9 percent.
Over the several pastconsecutive months, inter-bank interest rates have fluctuated from 7percent to 14 percent per year, depending on the term, and the overnightinter-bank rate stood at 7-8 percent. The highest rate for one monthwas also at 13-14 percent. The rates showed the improvement in liquidityof banks.
It is possible to cut the deposit interest rate to 10percent by late this year, if all favourable elements to reduceinflation are in place.
Many banks acted quickly following the Governor’s message.
Commercialbanks have prepared to cut lending rates as part of their commitmentwith the SBV in facilitating business access to capital sources forproduction and business.-VNA
