Having followed closely the Resolutions of the National Assembly and the directions of the Government and the Prime Minister, the SBV has managed the monetary policy and the banking operations in a consistent, proactive, flexible, timely and effective manner, in close coordination with the fiscal policy and other macro policies in order to contribute to controlling the inflation, maintaining the macro-economic stability, stabilizing the money market, and making efforts to reduce the lending interest rates in support of the economic recovery. Over the past months, the domestic economic growth has been faced with many difficulties, but the inflation has been kept under control; the liquidity of the credit institutions and the foreign bank branches are ensured. Therefore, in order to further implement the policy of the National Assembly, the Government and the Prime Minister on reducing the common lending interest rates, supporting businesses and the people to enhance their capital accessibility, contributing to recovering production and business activities, the SBV has decided to continue to cut the key interest rates, with the new adjustments taking effect on June 19, 2023, specifically as follows:
1. Decision No. 1123/QD-NHNN dated June 16, 2023 on the refinancing interest rate, the rediscounting interest rate, the overnight rate for the inter-bank electronic payments, and the interest rate applied to loans to finance short-term balances in the clearing transactions between the SBV and the credit institutions. Accordingly, the overnight interest rate for the inter-bank electronic payments and the interest rate applied to loans to finance short-term balances in the clearing transactions between the SBV and the credit institutions is lowered from 5.5% p.a. to 5.0% p.a.; the refinancing rate is reduced from 5.0% p.a. to 4.5% p.a.; the rediscounting rate is cut down from 3.5% p.a. to 3.0% p.a.;
2. Decision No. 1124/QD-NHNN dated June 16, 2023 on the interest rate caps for the mobilization in VND, which are applied to organizations’ and individuals’ deposits at the credit institutions as stipulated in Circular No. 07/2014/TT-NHNN dated March 17, 2014. Accordingly, the maximum VND mobilization interest rate for demand and below 1-month terms is maintained at 0.5% p.a.; the maximum VND mobilization interest rate for time deposits of 1-month to below 6–month terms is reduced from 5.0% p.a. to 4.75% p.a.; the maximum VND mobilization interest rate for short-term loans in VND applied to the People’s Credit Funds and the Micro Finance Institutions is cut down from 5.5% p.a. to 5.25% p.a.; the interest rates for time deposits of 6-month plus terms will be determined by each credit institution on the basis of the market capital supply and demand.
3. Decision No. 1125/QD-NHNN dated June 16, 2023 on the interest rate cap applied to the VND short-term loans provided by the credit institutions and the foreign bank branches to borrowers to meet the capital demand in a number of priority sectors and areas in line with Circular No. 39/2016/TT-NHNN dated December 30, 2016. Accordingly, the interest rate cap is reduced from 4.5% p.a. to 4.0% p.a.; the interest rate cap applied to the VND short-term loans in the priority sectors and areas provided by the People’s Credit Funds and the Micro Finance Institutions is lowered from 5.5% p.a. to 5.0% p.a.