Under the central bank's Decision No. 950/QD-NHNN, the overnight lending rates in interbank electronic payments and the interest rate of loans from SBV to credit institutions to make up the capital shortage for clearing payments will be decreased from six percent per year to 5.5 percent per year. Refunding interest rate shall be slashed from 5.5 percent per year to 5 percent a year while the rediscount interest rate will remain unchanged at 3.5 percent per year.
Besides, according to Decision No.951/QD-NHNN, the maximum interest rates in Vietnamese dong (VND) for time and non-time deposits under one month will remain unchanged at 0.5 percent per year; the maximum interest rates in VND for deposits with terms from one month to under six months will be revised down from 5.5 percent per year to five percent a year.
The maximum interest rates in Vietnamese dong for deposits at people's credit funds and microfinance institutions shall be decreased from six percent per year to 5.5 percent a year. The interest rates for over six-month ones will be identified by financial institutions based on the capital supply and demand in the market.
The latest move targets to facilitate commercial banks to reduce deposit rates, thereby creating conditions for lowering lending rates, supporting the economy and accelerating growth.
This is the third time the interest rates have been cut this year. Previously, in March and April, the SBV had reduced the regulatory interest rates by 0.5-1 per cent per annum to decrease the lending rates and remove the difficulties for the economy, enterprises and people./.