It is possible to keep the inflation under 4 percent this year but inflationary pressure is expected to be great next year, Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong told the National Assembly’s Q&A session on November 12.
Interest rate cuts by the State Bank of Vietnam (SBV) and cost savings among credit institutions will pave the way for sustainable lending rate reductions, thus easing difficulties faced by businesses.
The State Bank of Vietnam has been taking measures to support economic growth, including a 0.25% cut to the ceiling interest rate, prompting many banks to lower their saving rates. Still, many people with idle money are depositing in banks.
The State Bank of Vietnam (SBV) will cut its policy rates starting from March 17 in an attempt to support the economy which has been hurt by the COVID-19 outbreak.
The State Bank of Vietnam (SBV) has urged domestic and branches of foreign credit institutions to offer a cut in loan interest rates for businesses affected by the acute respiratory disease caused by the SARS-CoV-2 (COVID-19) which is taking toll on the regional economies.
In recent days, many domestic banks have lowered both deposit and lending interest rates for short-term VND loans to support businesses in the year-end months.
With a positive macroeconomic background at the moment, interest rates will basically stay steady until the end of the year due to excessive liquidity and proper credit growth, according to an official from the State Bank of Vietnam (SBV).
The State Bank of Vietnam (SBV)’s reference interest rate cut will allow credit institutions to access capital from central bank at a lower cost and stablise their own rates.
Prices of gold, real estate and stocks would be pushed up by the US Fed’s decision to reduce interest rates, a move that tends to make the US dollar lose value against other foreign currencies.
The State Bank of Vietnam (SBV)’s surprising decision to cut the interest rates on USD deposits on September 27 was welcomed by economic experts, who said the move was a step towards many goals.
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