The stock market has reportedly shown positive response to recent interest rate cuts.

The State Bank of Vietnam (SBV) has cut regulatory interest rates for four consecutive times since the beginning of this year, in the context that world interest rates continue to rise and stay at a high level.

The fourth cut in a row of regulatory interest rates by the State Bank of Vietnam (SBV) has provided an opportunity for commercial banks to reduce interest rates, thus attracting borrowers.

The State Bank of Vietnam (SBV) is cutting down a series of key interest rates by 0.25%-0.5% from June 19, which is expected to make a double impact on the economy thanks to stronger credit activities and higher liquidity.

Though deposit interest rates listed at commercial banks have decreased rapidly after the State Bank of Vietnam's (SBV) policy rate cut, savings of individual customers have kept rising.

Banks will have to exercise caution to ensure stable liquidity when trillions of Vietnamese dong in savings deposits reach their maturity dates over the next few months, according to experts.

Cash flow always looks to more attractive investment channels with higher returns, so when interest rates decrease, cash flow will shift from the savings channel to the stock and real estate markets, according to experts.

Measures must be taken to bring down bank interest rates, said the State Bank of Vietnam (SBV) at a meeting with CEOs from 26 commercial banks in the country on May 25.

The State Bank of Vietnam (SBV) has announced two decisions to further reduce policy interest rates, which will become effective from May 25, 2023.

Reducing interest rates, maintaining interest subsidies, hiking credit limits, and providing unsecured loans to manufacturing businesses are among the demands made by businesses in the south-eastern region to the State Bank of Vietnam (SBV).