Interest rates to ease
(VOV) - The State Bank of Vietnam (SBV) has announced that basic interest rates will be cut by 1 percent from December 24.
Under the SBV’s decision dated December 21, the refinancing interest rate and the rediscount interest rate will drop to 9 percent and 7 percent per year respectively. The overnight rate will stand at 10 percent per year.
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The central bank also applied a 2 percent deposit rate to non-term deposits and an annual 8 percent rate to deposits between the 1 to12 month term range.
People’s credit funds and micro-financial organisations are allowed to offer an annual 8.5 percent deposit rate for the 1 to 12 month range. For term deposits above 12 months, rates can be adjusted according to market supply and demand.
With the latest SBV decision, small and medium-sized businesses (SMEs) will have access to annual interest rates of 12 percent. This rate accords with the Government’s strategy for helping domestic businesses overcome recent challenges.