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 proactive, flexible 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 time, the global economic outlook has recovered but with uncertainties; the inflation has been declining slowly; the banking sectors in several large economies have been facing arising risks. Because of all those situations plus the risks of a recession, the central banks around the world may slow down the trend of raising the interest rates. In Vietnam, the domestic economic growth has faced with many difficulties, but the inflation has remained to be controlled; 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 for the businesses and the people to enhance their capital accessibility, contributing to recovering production and business activities, the SBV has decided to reduce the key interest rates, with the adjustments taking effect on May 25, 2023, specifically as follows:
1. Decision No. 950/QD-NHNN dated May 23, 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 6.0% p.a. to 5.5% p.a.; the refinancing rate is reduced from 5.5% p.a. to 5.0% p.a.; the rediscounting rate is maintained at 3.5% p.a.;
2. Decision No. 951/QD-NHNN dated May 23, 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 decreases from 5.5% p.a. to 5.0% 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 6.0% p.a. to 5.5% 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.