Interest rates remain stable: survey

Jun 3rd at 13:44
03-06-2017 13:44:10+07:00

Interest rates remain stable: survey

Interest rates for deposits and loans and bond yields have remained relatively steady since the end of January, as inflation is under control and foreign exchange rate is stable.

 

These are the findings of the latest survey on interest rates done by HCM City Securities Company (HSC).

Currently, interest rates for dong deposits are 4.5 to 5.4 per cent for one- to six-month terms; 5.4 to 6.5 per cent for six- to below-12-month terms; and 6.4 to 7.2 per cent a year for more than 12 months.

The dong lending rates average 6 to 7 per cent per year for short-term loans, and 9 to 10 per cent a year for medium- and long-term loans in priority fields. The average rate for ordinary loans is 6.8 to 9 per cent a year for short term, and 9.3 to 11 per cent a year for medium- and long-term loans.

The yields of the Government’s five-year, seven-year, 20-year and 30-year bonds are 5.03, 5.35, 7 and 7.55 per cent a year, respectively.

The consumer price index in May slid 0.53 per cent against the previous month, according to the General Statistics Office, suggesting that inflation would not rise in the short term. Together with the stable foreign exchange rate, it has helped keep interest rates stable in the first part of 2017, HSC said.

HSC expects the devaluation of the dong against the dollar to be less than 2 per cent this year. The dollar has strengthened against the dong by 1 per cent in the first five months.

Interest rates, especially of deposits, may inch down over the next few months, HSC said, adding that credit growth might exceed the 16 per cent target, helping the GDP meet the 6.7 per cent growth target set for 2017.

Nguyen Hoang Minh. deputy director of the State Bank of Viet Nam’s HCM City branch, has also forecast that interest rates for the rest of the year may decline by 0.5-1 percentage points against December 2016, if the dong remains stable.

Last week, market research company Market Intello also predicted that the average interest rate this year would drop by 0.5 percentage points compared to 2016. It expects the exchange rate to increase by 1-1.5 per cent as the US Federal Reserve’s plans to raise rates and trade deficit may raise the demand for US dollars much more than in 2016. However, it does not expect the dong to be depressed further, as inflation is well under control at below 4 per cent and the central bank has abundant foreign reserves.

bizhub



NEWS SAME CATEGORY

World Bank suggestions to resolve VN’s bad debts

Experts from the World Bank have made four key recommendations to resolve Viet Nam’s problem of non-performing loans (NPLs).

MoF outlines Gov’t loan re-lending

The Ministry of Finance on Wednesday held a press conference to provide information about newly-issued Decree No. 52/2017/ND-CP on re-lending of Government’s...

NAPAS chairman becomes head of SBV payment department

Pham Tien Dung, chairman of the National Payment Corporation of Viet Nam (NAPAS), was appointed head of the State Bank of Viet Nam (SBV)’s payment department on...

MoF makes Suntory Pepsi tax ruling

The branch of Suntory Pepsico Viet Nam Beverage Company in Can Tho City is subject to taxes as an expansion but not as a new investment, the Ministry of Finance has...

Bank for Social Policies’ capital rises 6.7%

The Bank for Social Policies’ total capital at the end of the first quarter rose 6.7 per cent against December 2016 to VND173.34 trillion (US$7.6 billion), its...

Ministry proposes green protection fuel tax hike

The Ministry of Finance wants to increase environmental protection tax on petrol and oil to ensure sufficient budget collection, as the country has to cut import...

Regulations drafted for non-banking financial companies

Non-banking financial companies (NBFC) may be allowed to set up a maximum three branches in a fiscal year.

Overnight rate at three-month low, courtesy good liquidity

Inter-bank interest rates last week slipped 0.83-1.03 percentage points against the previous week because of good liquidity, pushing Friday’s overnight rate to a...

Central bank maintains flexible forex regime

In the first four months of the year, the trade deficit was at quite high at around US$2.8 billion.

Maritime Bank listing rejected

Vietnam Maritime Commercial Joint Stock Bank (Maritime Bank) has failed to get approval from shareholders to trade its shares on the stock exchanges.

Bank stocks

Insurance stocks


MOST READ


Back To Top