The State Bank of Vietnam adjusts operating interest rates
The State Bank of Vietnam adjusts operating interest rates
In an effort to continue implementing synchronous measures to control inflation, stabilise the macro-economy, and ensure the safety of the banking system, the State Bank of Vietnam (SBV) has just issued a number of decisions to adjust interest rates that take effect from October 25.
According to Decision No.1809/QD-NHNN, the SBV has increased the refinancing interest rate from 5 per cent per year to 6 per cent per year, the discount rate from 3.5 per cent to 4.5 per cent per year, and the interest rates on overnight loans through interbank electronic payments and loans from the SBV to cover capital shortfalls when clearing payments to credit institutions from 6 per cent to 7 per cent per year.
Decision No.1812/QD-NHNN states that the maximum interest rate applicable to deposits with a term of less than 1 month has risen from 0.5 per cent to 1 per cent per year. The maximum interest rate applicable to deposits with a term from 1 month to less than 6 months has climbed from 5 per cent per year to 6 per cent per year, with the exception of deposits in VND at the People's Credit Funds of Vietnam and microfinance institutions, which increases from 5.5 per cent to 6.5 per cent per year. The interest rates for deposits with a term of 6 months or more are set by credit institutions on the basis of market capital supply and demand.
According to Decision No.1813/QD-NHNN, the maximum short-term lending rate in VND at credit institutions for borrowers to meet capital needs for several economic sectors and fields (specified in Circular No.39/2016/TT-NHNN) has increased from 4.5 per cent per year to 5.5 per cent per year. The maximum short-term lending interest rate in VND at the People's Credit Funds of Vietnam and microfinance institutions for these capital needs has risen from 5.5 per cent to 6.5 per cent per year.
The SBV also noted that it would closely monitor domestic and international market developments in order to promptly administer monetary policy solutions and tools, and be ready to intervene in the currency and foreign exchange markets to meet the liquidity demands of credit institutions.
