Update news interest rates
With bond interest rates 1-2 percent higher per annum than 12-month savings interest rates, commercial banks are increasing corporate bond issuance to mobilize more long-term capital.
Deposit interest rates have dropped to a 3-year low, but deposits at banks have reached a record high. Some banks reported an increase of up to 150 percent in payments for deposit interest.
Experts have different forecasts about the time when the State Bank of Vietnam (SBV) will lower its policy interest rate.
Businesses say that commercial banks have not slashed lending interest rates as they have claimed. They still have to borrow money at an interest rate of 11.5 percent.
Vietnamese businesses anticipate some relief as the central bank slashes interest rates, with credit growth expected to accelerate in the second half of 2023.
The United Overseas Bank (UOB) has lowered its 2023 economic growth forecast for Vietnam from 6% to 5.2%, and forecast that Vietnam will continue to cut regulatory interest rates in the third quarter of this year to stimulate its economy.
The State Bank of Vietnam (SBV) has sent a document to credit institutions and branches of foreign banks and SBV in provinces and centrally-run cities regarding the reduction of interest rates.
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.
Experts say the State Bank of Vietnam (SBV) is expected to cut interest rates further to rates seen during the pandemic. However, the effectiveness of the cut is unclear.
The State Bank of Vietnam (SBV) has cut some operating interest rates, but has not intervened in ceiling interest rates of 6-month or longer-term deposits, so there are interest rate gaps among commercial banks.
Four State-owned commercial joint stock banks in Vietnam have reached a high consensus on the State Bank of Vietnam (SBV)'s policy on reducing interest rates in the coming time.
The State Bank of Vietnam (SBV) announced it would reduce several policy interest rates from April 3, the second cut within one month, the regulator announced on its website March 31 night.
The State Bank of Vietnam (SBV) has taken a daring move by slashing interest rates amid an upward trend in the world. If inflation remains low, Vietnam’s interest rates will be lower than those in developed economies.
The State Bank of Vietnam (SBV) on March 14 issued two decisions to reduce regulatory interest rates by 0.5% to 1%, which will come into force on March 15.
Noteworthy stories of the week: Freight charge falls by 40 percent; the number of foreign travelers soars by 36 times; some commercial banks are granted more credit room for 2023; banks slashed deposit interest rates.
The group of the four biggest State-owned banks (Big4) have launched preferential loan packages with interest rate reductions of up to 3 per cent per year to lower short-term lending rates to only 7 per cent per year.
The race to lure demand deposits among banks seems to be decelerating as it is more difficult for banks to attract the cheap capital source.
High interest rates have been hurting businesses' ability to invest in ramping up production capacity, said industry insiders and economists.