Illustrative image (Photo: VNA) Hanoi (VNA) - Interest rate cuts by the State Bank of Vietnam (SBV) andcost savings among credit institutions will pave the way for sustainablelending rate reductions, thus easing difficulties faced by businesses.
Head of the SBV’s Monetary PolicyDepartment Pham Thanh Ha said the latest interest rate adjustment is incompliance with the Prime Minister’s Directive No. 11/CT-TTg dated March 4 and DecisionNo. 15/2020/QD-TTg dated April 24, as well as Government Resolution No. 41/NQ-CPdated April 9.
He said the SBV advocates ensuringliquidity for credit institutions and reducing interest rates after consideringmacro-economic factors, inflation targets, and the operating safety of credit institutions.
The central bank will continue to closelymonitor domestic and foreign market developments to actively and flexiblyadjust monetary policies, thus controlling inflation and propelling economicgrowth.
On May 12, the SBV decided to cut lendingand discount rates, with annual refinancing rates coming down from 5 percent to4.5 percent and discount rates from 3.5 percent to 3 percent.
Ceiling rates on deposits of one to sixmonths fell to 4.25 percent per annum from 4.75 percent, while rates fornon-term deposits and those below one month fell from 0.5 percent to 0.2percent.
Short-term lending rates for fivepriority business sectors went down from 5.5 percent to 5 percent per annum./.
