The State Bank of Vietnam (SBV) has cut regulatory interest rates for four consecutive times since the beginning of this year, in the context that world interest rates continue to rise and stay at a high level, Vietnam News Agency reported on Monday.
The central bank’s decisions clearly reflect its efforts to support economic growth through the credit channel.
At present, the interest rate level basically remains stable, with deposit and lending interest rates tending to decrease gradually. The average deposit interest rate of commercial banks is about 5.8% per year, down 0.7% compared to the end of 2022, while the average lending interest rate in Vietnamese dong is about 8.9% a year, down 1%.
The SBV’s decision to continue reducing regulatory interest rates establishes a reduction trend for the market in the coming time, thereby orienting credit institutions to take more drastic steps to reduce lending rates and accompany businesses and people to contribute to promoting economic growth and recovery, said SBV Standing Deputy Governor Dao Minh Tu.
Dr. Can Van Luc, member of the National Advisory Council on Financial and Monetary Policies, said that the central bank’s move not only aims to assist banks and enterprises, and but also shows an increasingly clear sign of a shift in the monetary policy from being cautious to being loosened.
Source: Lao News Agency