Vietnamese Dong Key Rate Unchanged, 8.25 per cent

The Vietnamese dong basic interest rate applicable for July is 8.25 per cent a year, remaining unchanged compared to the rate in June, the central bank said.

 

According to the State Bank of Vietnam (SBV), deposit and lending interest rates of commercial banks in the first half continued to slightly increase compared to the start of this year and would possibly surge in the future.

 

Compared to the end of last year, Vietnamese dong deposit and lending interest rates of credit organizations rose by some 0.12-0.24 per cent a year of which the increase in the lending interest rates was lower than the rise in deposit rates.

 

In a bid to ease pressures to boost interest rates of credit organizations in the face of interest rate hikes in the world market, the SBV has kept key rates in the first six months at the same level as December, 2005. Accordingly, the refinancing rate is fixed at 6.5 per cent a year and the discounting rate is 4.5 per cent a year.