SBV headquarters
Previously, in the context of increasing interest rates in the international market, the SBV still managed the monetary policies in a consistent manner in order to stabilize the common interest rates, contributing to stabilizing the macro-economy and supporting the economic growth. In the recent period, the world economy has been fluctuating in a less favorable way, and many central banks, including the United States Federal Reserve System (Fed) and the European Central Bank (ECB), have reduced their key interest rates. Meanwhile in Vietnam, the domestic macro-economy has continued to be stable, the inflation has been controlled, the money and forex markets have developed stably. Therefore, from September 16, 2019, the State Bank of Vietnam (SBV) has decided to lower the key interest rates as follows:
1. Decision No. 1870/QD-NHNN dated September 12, 2019 on the refinancing interest rate, the rediscounting interest rate, the overnight rate in the inter-bank electronic payments, and the rate of loans to finance short balances in clearing transactions between the SBV and the commercial banks. Accordingly, the refinancing rate is cut down from 6.25% p.a to 6.0% p.a; the rediscounting rate is reduced from 4.25% p.a to 4.0%; the overnight rate in the inter-bank electronic payment and the rate of loans to finance short balances in clearing transactions between the SBV and the commercial banks is lowered from 7.25% p.a to 7.0% p.a.
2. The interest rate of bids of valuable papers through the open market operations is cut down from 4.75% p.a to 4.5% p.a.
Translated by Le Hang