Vietnamplus

The race of interest rate hikes among commercial banks is showing signs of cooling down as many banks have adjusted down the rate by several percentage points per year after the Lunar New Year (Tet) holiday and have set stricter conditions for customers to enjoy the high rates.

Insurance companies will have the chance to earn higher profits in 2023 thanks to a continual interest rate hike trend.

The State Bank of Vietnam set the daily reference exchange rate for the US dollar at 23,316 VND/USD on September 22, up 15 VND from the previous day, following the Fed’s decision to raise interest rate by 0.75 percentage point.

The central bank of the Philippines on July 14 announced a surprise interest rate hike - the increase for the third month in a row.

Thanks to increases in savings interest rates, deposits at banks increased strongly in the first two months of this year after declining last year.

The Vietnamese monetary market will not suffer from any significant impact from the US Federal Reserve (FED)’s fourth interest rate hike in 2018 as the move was already expected, experts have said.

Political clarity and continued economic expansion have bolstered investor sentiment to its highest level in seven months and prompted analysts to forecast the Thai stock market hitting 1,826 points by year’s end.

Vietnam’s stock market capitalisation increased 13 percent against the end of last year, reaching nearly 3.97 quadrillion VND (169.5 billion USD) by the end of August.

Foreign exchange rates are likely to rise strongly due to concerns that the US-China trade war may be escalating, said Director of the Vietnam Institute for Economic and Policy Research (VEPR) Nguyen Duc Thanh.

The US dollar has appreciated significantly against the Vietnamese dong in the past few days, but local officials and experts believe these hikes won’t affect Vietnam’s economy in any major way.

Some commercial banks have entered a new interest rate hike race for long-term deposits with adjustments from 0.1-0.2 percent per year.

The gold market resumed stability shortly after a quick increase on March 16 after the US Federal Reserve (Fed) raised its interest rates, which experts described as going against common rule.

The stock market will likely continue its losing streak this week as investors stay cautious ahead of the US Federal Reserve’s meeting.

Individuals as well as small and medium-sized enterprise are apprehensive loan interest rates could rise since banks have kept hiking deposit interest rate since the end of last year.

Vietnamese shares extended losses for a third day as banks fell amid investor expectations that interest rate hikes in the US and Europe could undermine the profitability of local financial firms.