State Bank continues to reduce operating interest rates from June 19

(HNMO) - In order to continue supporting and accompanying businesses and people, on June 16, the State Bank continued to issue a decision to reduce operating interest rates. The decision takes effect from June 19.

Banks have the conditions to continue to reduce interest rates.

Specifically, in Decision No. 1323/QD-NHNN, the overnight lending interest rate in interbank electronic payments and lending to cover capital shortages in clearing payments of the State Bank for credit institutions is reduced from 5.5%/year to 5%/year; the refinancing interest rate is reduced from 5%/year to 4.5%/year; the rediscount interest rate is reduced from 3.5%/year to 3%/year.

According to Decision No. 1324/QD-NHNN on maximum interest rates for deposits in Vietnamese Dong of organizations and individuals at credit institutions as prescribed in Circular No. 07/2014/TT-NHNN (dated March 17, 2014), the maximum interest rate applied to non-term deposits and deposits with terms of less than 1 month remains at 0.5%/year; the maximum interest rate applied to deposits with terms from 1 month to less than 6 months is reduced from 5%/year to 4.75%/year.

The maximum interest rate for deposits in VND at people's credit funds and microfinance institutions is reduced from 5.5%/year to 5.25%/year; the interest rate for deposits with terms of 6 months or more is determined by credit institutions based on market supply and demand of capital.

In Decision No. 1325/QD-NHNN on the maximum short-term lending interest rate in VND of credit institutions for customers borrowing to meet capital needs for a number of economic sectors and industries as prescribed in Circular No. 39/2016/TT-NHNN (dated December 30, 2016), the maximum short-term lending interest rate in VND of credit institutions for customers borrowing to meet capital needs for a number of economic sectors and industries is reduced from 4.5%/year to 4%/year. In particular, the maximum short-term lending interest rate in VND of people's credit funds and microfinance institutions for these capital needs is reduced from 5.5%/year to 5%/year.

According to the State Bank, monetary policy and banking operations are managed firmly, proactively, flexibly, and harmoniously, reasonably, and closely coordinated with fiscal policy and other macroeconomic policies to contribute to controlling inflation, stabilizing the macro economy, and the monetary market.

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