SBV to lower deposit & short-term lending interest rates

SBV to lower deposit & short-term lending interest rates

Since October 29, the State Bank of Viet Nam (SBV) will lower the interest rate ceiling in VND from 6% to 5.5% per year for short-term deposits (1-6 months long), said SBV Deputy Governor Nguyen Thi Hong.

In addition, the SBV will also cut short-term lending interest rates in VND from 8% to 7% per year. The U.S dollar deposit rates will be slashed, from 1% to 0.75% per year.

The news was announced by the SBV on October 28 at its regular press conference.

Ms. Nguyen Thu Ha, Deputy Director of the SBV’s Monetary Policy Department said that the latest interest rate cuts applied since March 2014 contributed to extricating difficulties for production and business; controlling inflation and stabilzing the monetary market.

In the rest of the year, the SBV would not adjust other interest rates such as the rediscount, refinancing and overnight rates.

The SBV also called on commercial banks to cut lending interest rates for prioritized fields and keep medium and long-term interest rates at less than 10% per year.

vir