The ceiling interest rate for deposits in dong with terms of one monthup will be cut from 12 to 11 percent per year from May 28, under a StateBank of Vietnam 's May 25 decision.
The ceilinglending interest rate will be correlatively slashed from 15 to 14percent per year on the same day, applied to four prioritised sectorsincluding export, agriculture, rural areas and small- and medium-sizedenterprises.
Interest rates used as management tools tobe adjusted down include the refinancing rate from 13 to 12 percent, thediscount rate from 11 to 10 percent, and the inter-bank electronicpayment rate from 14 to 13 percent.
The State Bank saidthe interest rate reduction aims to help solve difficulties forproduction and business activities in accordance with the Governmentdirection.
It said economic improvement, especiallyeasing inflationary pressure, facilitated the move. The consumer priceindex ( CPI ) edged up only 0.18 percent in May and increased by 2.87percent in the first five months of this year, which was in line withthe target the National Assembly had set out for this year, it said.
Improved bank liquidity and a stabilising monetary market were other factors, it added.
The central bank noted that although interest rates have graduallydeclined, their slow progress together with rising credit risks stillsignificantly challenge businesses in the face of falling purchasingpower and increasing inventories.
Before the May 25 move, interest rates had been slashed three times this year.-VNA
The ceilinglending interest rate will be correlatively slashed from 15 to 14percent per year on the same day, applied to four prioritised sectorsincluding export, agriculture, rural areas and small- and medium-sizedenterprises.
Interest rates used as management tools tobe adjusted down include the refinancing rate from 13 to 12 percent, thediscount rate from 11 to 10 percent, and the inter-bank electronicpayment rate from 14 to 13 percent.
The State Bank saidthe interest rate reduction aims to help solve difficulties forproduction and business activities in accordance with the Governmentdirection.
It said economic improvement, especiallyeasing inflationary pressure, facilitated the move. The consumer priceindex ( CPI ) edged up only 0.18 percent in May and increased by 2.87percent in the first five months of this year, which was in line withthe target the National Assembly had set out for this year, it said.
Improved bank liquidity and a stabilising monetary market were other factors, it added.
The central bank noted that although interest rates have graduallydeclined, their slow progress together with rising credit risks stillsignificantly challenge businesses in the face of falling purchasingpower and increasing inventories.
Before the May 25 move, interest rates had been slashed three times this year.-VNA
