Vietnam Central Bank Maintains Base Rate at 7%/Yr for September
The State Bank of Vietnam (SBV), the country’s central bank, decided to keep the base interest rate unchanged at 7.0% per annum for September, the SBV said.
It is the seventh consecutive month that the base interest rate has remained unchanged after the SBV halved borrowing costs between October and February to support economic growth amid the global economic downturn.
The refinancing and discount rates are 7.0% and 5.0% per year, respectively, the SBV said in its new decision No. 2024/QD-NHNN, which takes effect on September 1.
Meanwhile, the overnight rate for inter-bank electronic payments and the rates of loans used to finance balance clearing between the SBV and commercial banks is 7.0% per year.
The central bank has said that interest rates will likely remain steady for the remainder of the year.
Previously, the central bank lowered the interest rate on compulsory reserves on dong-denominated deposits at credit institutions to 1.2% from 3.6%.
It is among a number of moves by the SBV to tighten its control over loans for riskier sectors such as stock and realty to curb inflation below double digits, while continuing to stimulate domestic demand for consumer goods. (SBV, Vietnam Economic Times)
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