State Bank of Vietnam cuts official interest rates

The headquarters of the State Bank of Vietnam in Hanoi (Photo: State Bank of Vietnam)

Under Decision 1870/QD-NHNN dated September 12, 2019, the re-financing rate will be reduced to 6 percent per annum from the current 6.25 percent.

The discount rate will be adjusted to 4 percent per annum from the current 4.25 percent.

The overnight electronic inter-bank interest rate and rate of loans to offset capital shortage in clearance between the SBV and credit institutions will go down to 7 percent per annum from the current 7.25 percent.

The SBV said in the previous period, it has carried out synchronous measures to stabilize the interest rates, contributing to keeping the macro economy stable and support a suitable growth rate.

It noted that entering the current period, the world economy has seen less favourable developments, and the central banks of many countries, including the Fed of the US and the European Central Bank, have cut their interest rates.

The bank affirmed that the domestic macro economy remains stable, inflation is under control, and the monetary and foreign exchange markets stay stable.