Latest News about interest rate
Vietnam’s credit growth is forecast to slow to only 8 percent in 2020 from 13.7 percent last year due to a sharp slowdown in economic activity amid the COVID-19 pandemic.
Some commercial banks have announced lower lending interest rates to help their clients overcome the difficulties caused by coronavirus (Covid-19) crisis.
Vietnam’s central bank has asked commercial banks to promptly adopt measures to support their customers in the wake of the coronavirus outbreak, including rescheduling repayments and revising down interest rates.
When the State Bank of Vietnam (SBV) late last week slashed the dollar purchase price, the greenback prices quoted by commercial banks were adjusted immediately.
Reporting high profits, Vietnamese commercial banks have once again lifted concerns about profit growth limits.
The State Treasury has mobilised more than 182.4 trillion VND (7.88 billion USD) through Government bond auctions on the Hanoi Stock Exchange (HNX) so far this year, fulfilling 73 percent of the yearly plan.
This expansion was due mainly to a 4% on-quarter growth in government bonds to US$51 billion as the central bank increased issuance of bills.
Applauding the State Bank of Vietnam’s move to cut the prime interest rate, experts said the 0.25 percentage point cut, however, is relatively modest.
After two big purchases of foreign currencies in the first four months of the year and from July until now, Vietnam’s forex reserves reached the highest level, now at $70 billion.
While the EVFTA and CPTPP have paved the way for Vietnamese enterprises to penetrate the world market, high taxes and interest rates have blocked their path.
Analysts believe that the State Bank of Vietnam (SBV) should follow the move of other central banks to cut interest rates. This would help ease the burden on businesses.
The State Bank of Vietnam (SBV) obtained a large amount of foreign currencies in the first half of 2019, pushing foreign exchange reserves recorded in the period to the highest level to date.