According to the State Bank,regulatory interest rates will be slashed by 0.25%-0.5% per year.
The State Bank decided to adjust interest rates, effective from June 19 to support people and businesses ingettingbetter access to capital, contributing to the recovery of production and business activities following the policies of the National Assembly, Government and the Prime Minister.
Under Decision No. 1123/QD-NHNN, overnight lending rates in interbank electronic payments and loans to cover capital shortfalls in clearing payments of the SBV for credit institutions will be decreased from 5.5% per year to 5% per year, the refunding interest rate will be revised down from 5% per year to 4.5% per year, and the rediscount interest rate will be lowered to 3% from 3.5% per year.
Under the decision, the maximum interest rate applied to demand deposits and deposits with a term of less than 1 month will remain at 0.5% per year, while the maximum interest rate applied to deposits with a term from 1 month to less than 6 months will be reduced from 5.0% per year to 4.75% per year.
Particularly, the maximum lending interest rate ofVietnamese dong incredit institutions for borrowers to meet capital needs for several economic sectors and industries will be lowered from 4.5% per year to 4% per year.The maximum short-term lending interest rate ofVietnamese dong forpeople’s credit funds and microfinance institutions will be decreased from 5.5% per year to 5% per year.
