More Vietnam Banks Cut Deposit Interest Rates on Lower CPI

A number of local banks Aug 25 lowered dong deposit rates, pushing down average interest rates to 17.4 per cent-18.2 per cent per annum after the General Statistics Office released CPI, saying consumer prices soared 1.56 per cent on month in Aug, state media said on August 26.

 

Local banks started to lower dong interest rate of eight-month more deposits as they predicted that interest rate will be subduing in 2009, the state-run Tuoi Tre (Youth) newspaper said.

 

Notably, the Dong A Bank joint stock bank twice cut the interest rates since the start of August to 17.5 per cent-18.2 per cent, the paper said.

 

Local banks also cut interest rates of dollars and gold of 9-12-month terms to 6 per cent per annum from the peak of 8 per cent.

 

Many banks also forecast that CPI will be on the downtrend, which will prompt the State Bank of Vietnam to cut the base rates in Sept this year.

 

Once the central bank announces to cut the base rate, the average inter-bank interest rates will be lowered, accordingly, Tran Phuong Binh, CEO of the Dong A Bank noted.

 

Currently, SBV is applying the base rates at 14 per cent per annum. (Youth)