Transaction at a branch of Vietcombank in Bac Ninh province (Illustrative photo: VNA) Hanoi (VNA) - The State Bank of Vietnam(SBV)’s interest rate cut is a positive sign for the market and economy,especially for businesses with loans, according to experts.
Financespecialist Nguyen Tri Hieu said through the adjustment, the central bank willpartly support banks in terms of capital. Meanwhile, the cut also affectscommercial banks and financial institutions’ interest and loan rates, mainly onaccounts with terms of less than 6 months.
Echoingthe view, banking expert Le Xuan Nghia said that in addition to the delay ofloan payments, reducing interest rates is vital to helping businesses and theeconomy recover.
Head of the SBV’s Monetary Policy Department Pham Thanh Haadded that the move will create favourable conditions for credit institutionsto sustainably reduce their rates, thereby easing the burden on the economy.
The adjustment was in line with evaluations ofthe global market, as many central banks worldwide have taken similar measuresto navigate economies through the crisis brought about by COVID-19, he noted.
By May 13, most of the commercial banks inVietnam had lowered their interest rates on savings accounts with terms of lessthan 6 months, which previously stood at between 3.9 – 4.75 percent per annum.
Thecentral bank will keep a close eye on domestic and foreign market developments toactively and flexibly adjust monetary policies in an attempt to curb inflation,stabilise the macro-economy and ensure liquidity and safe operations of creditinstitutes.
The SBV on May 12 decided to cut lending anddiscount rates, with annual refinancing rates coming down to 4.5 percent from 5 percent and discount rates to 3 percent from 3.5 percent.
Ceiling rates on deposits of one to six months arebrought down to 4.25 percent per annum from 4.75 percent, and rates fornon-term deposits and those below one month, to 0.2 percent from 0.5 percent.
Short-termlending rates for five priority business sectors are down to 5percent from 5.5 percent per annum under the decision./.
