>> Banks still seek a deposit interest rate of over 14%
>> Vietnam caps deposit interest rates at 14%
The State Bank of Vietnam (SBV) issued a decision, on March 8, to raise refinance and discount rates in an effort to curb inflation.
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The new refinance rate has been lifted from 11% to 12%. This is the second rate hike since February 17, when the SBV raised it to 11% from the former 9%.
The discount rate was also increased from 7% to 12%. The last increase was in November of last year, which brought it up from 6%.
The overnight inter-bank interest rate has also been raised from 11% to 12%.
Meanwhile, the bank has kept its benchmark lending rate unchanged at 9%, since last November.
The SBV’s March 3 circular capping interest rates at 14% is a reaction to the high interest rates offered by many commercial banks, which have been estimated at upwards of 17%.
Recently, Prime Minister Nguyen Tan Dung issued a range of anti-inflation policies. The strategic use of interest rate regulations is an essential part of the Government’s new policy.