Benchmark interest rates will be adjusted from May 13 (Photo: VNA)Hanoi (VNA) - The State Bank of Vietnam (SBV)will adjust its benchmark interest rates from May 13 in an attempt to support aneconomy hurt by the COVID-19 outbreak.
It will reduce the benchmark refinance rate to 4.5percent per annum from 5 percent and the discount rate to 3 percent per annumfrom 3.5 percent, it said in Decision 918/QD-NHNN released on May 12.
The overnight lending rate in the inter-bank market willbe lowered to 5.5 percent per annum from 6 percent and the open-market-operation(OMO) rate to 3.0 percent per annum from 3.5 percent.
The central bank also issued two new decisions, under whichthe caps on the interest rates of some types of Vietnam dong-denominateddeposits and short-term loans will be reduced by 0.3 to 0.5 percentage points,depending on the maturity.
The bank said the COVID-19 pandemic has been a complexdevelopment resulting in a global economic crisis and cited the fact that manyforeign governments have adopted economic stimulus policies, one of which ispolicy rate cuts from central banks.
The rate cut is also in line with guidelines from theGovernment on removing difficulties for production and business operations and ensuringsocial welfare, it noted./.
VNA
