At the same time, the refinance interest rate will be fixed at 13 percent per annum and discount rate at 11 percent per annum.
The Governor said the central bank every month will announce the basic rates on Vietnam dong as a foundation for commercial banks to set their interest rates for deposits and loans. However, he said, commercial banks’ rates are capped below 150 percent of the basic rates periodically fixed by the SBV.
The move was considered as a strong change of Vietnam dong’s interest rates as at present, the basic interest rate is 8.75 percent, the refinance interest rate is 7.5 percent and the discount rate, 6.0 percent, per annum.
The Governor also said the new interest rates reflect the market reality and the central bank’s monetary policy, and they will help harmonise the benefits for depositors, credit organisations and borrowers.
According to Duong Thu Huong, General Secretary of the Vietnam Bankers’ Association, the central bank’s decision was fully supported by commercial banks at their recent meeting.-VNA