Nhan Dan – The Governor of the State Bank of Vietnam (SBV) yesterday issued Decision No. 1289/QĐ-NHNN to cut benchmark interest rates by one percentage point, following the downward trend in inflation and the actual supply and demand in the capital market.
Accordingly, the refinancing rate will be lowered to 10%, while the rediscounting rate will be cut to 8%. The overnight rate in the inter-bank electronic payment system and lending gap in the SBV clearing for banks now stands at 11%.
The decision will take effect on July 1 and replace Decision No. 1196/QĐ-NHNN dated June 8, 2012.
This is the fifth consecutive interest rate cut so far this year, aiming to improve the liquidity of the banking system and help businesses ease their financial difficulties, say experts.