The State Bank of Vietnam (SBV) decided again lower the ceiling for deposit interest rates by 1% across the board, effective today, April 11.
The ceiling deposit interest rate is lowered by 1% to 12% per annum from April 11
This will bring the cap for deposit interest rates at commercial banks to 12%.
The cut followed quickly on the heels of the last 1% cut, in March.
Annual interest rates on refinancing services and the overnight rate will also be cut will also be cut by 1%, to 13% and 14% respectively.
Rediscounting interest rates will be cut to 11% per year, from the previous 12%.
In addition, the maximum interest rates for demand and term deposits of less than one month will be reduced to 4% per year. Term deposits of more than one month will now be 12%.
For People’s Credit Fund, the 1% reduction will require lowering deposit interest rates, with terms over one month, to 12.5% per year.
Access to credit for small to medium sized businesses remains a problem.
Cao Sy Kiem, Chairman of the Vietnam Association of Small and Medium-Sized Enterprises, said that when the national inflation rate reaches 9%, and deposit interest rates can be cut to 11%, the annual lending interest rate would likely fluctuate between 14%-15%. This, he said, would make it much easier for enterprises to do business.
SBV Governor, Nguyen Van Binh, recently said that, as long as inflation stays between 10% and 11%, deposit interest rates could continue to decrease by 1% in following quarters.