Vietnam c.bank cuts policy rates again to buttress economic recovery
The cut is applied to the refinancing interest rate, discount interest rate, and overnight lending rate.
The State Bank of Vietnam (SBV), the country’s central bank, has announced its decision to further slash policy interest rates by 50 basis points in a move to support economic recovery.
The State Bank of Vietnam. |
The SBV’s decision is in line with other major central banks around the world in face of the unfavorable global economic environment under the impact of the Covid-19 pandemic.
As per the decision, a 0.5 percentage point reduction would be applied to the refinancing interest rate, discount interest rate, overnight lending rate, and interest via open market operations (OMO).
Accordingly, the refinancing interest rate is down from 5% per annum to 4.5%, rediscount rate from 3.5% to 3%, overnight interest rate from 6% to 5.5% and interest rate via OMO from 3.5% to 3%.
The SBV also lowered the interest rate cap to 4.25% annually from 4.75% for deposits with maturities of one month to less than six months.
The deposit interest rate cap with maturities of less than one month is reduced from 0.5% to 0.2% per annum, while the maximum rate for deposit with maturities of one month to less than six months at people’s credit funds and micro finance services is cut from 5.25% to 4.75%.
Meanwhile, the SBV ordered banks to lower the maximum lending rate for short-term loans to 5% from 5.5%, with the aim of helping companies operating in the fields of agriculture, high-tech industries and exports, among others. Similarly, that rate at people’s credit funds and micro finance services is down from 6.5% to 6%.
The deposit rate for maturities of over six months is subject to each credit institution’s decision on the basis of supply – demand.
The cut is set to take effect on May 13.
The SBV on March 17 cut its policy rates by 50 – 100 basis points.
Other News
- Building Hanoi's smart city with smart banking
- Vietnam stock market clears major legal hurdle to potential upgrade
- Cashless parking in Hanoi: Good model fuels smart transport
- Banking sector dominates Vietnam’s corporate bond market
- Prime Minister expects lending to grow by 15% this year
- Vietnam, Singapore strengthen partnership in stock exchange operations
- HSBC raises Vietnam’s GDP growth forecast to 6.5% in 2024
- Hanoi to push for smart tax agency
- Taxes revenue from online shopping in Vietnam nearly triple in H1
- Banks inject over US$20 billion into economy in June, surpassing five-month total
Trending
-
Prime Minister leaves Hanoi for regional events in China
-
Vietnam news in brief - November 5
-
Hanoi embraces digital transformation in agriculture
-
Hanoi seeks partnerships to build skilled workforce for digital transformation
-
Adorable baby hippo wows Hanoi visitors
-
Localizing idols: Vietnam’s shift from Hallyu to homegrown stars
-
Hanoi plans major upgrade for iHaNoi by 2026
-
Berlin Film Festival award-winning motion picture premieres in Vietnam
-
Love triangle drama opens Hanoi Open Stage Festival