On March 14, 2023, the State Bank of Vietnam (SBV) has issued a Decision adjusting a number of the key interest rates. These adjustments shall take effect on March 15, 2023.
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 months, the global economic outlook has undergone some uncertainties, the inflation in many countries has remained at high levels; the domestic economic growth has faced with specific difficulties; several macro-economic indicators are lower than those of the same previous period. However, in the context that the domestic inflation has been controlled, the credit institutions and the foreign bank branches have managed to cut down on their costs and reduce the common mobilizing interest rates, in order to further implement the policy of the National Assembly, the Government and the Prime Minister on removing the difficulties for the economy, reducing the lending interest rates for the businesses and the people, the SBV has decided to adjust the key interest rates, with the adjustments taking effect on March 15, 2023, specifically as follows:
1. Decision No. 313/QD-NHNN dated March 14, 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 refinancing rate is maintained at 6% p.a.; the rediscounting rate is reduced from 4.5% to 3.5% p.a.; the overnight rate for the inter-bank electronic payments and the rate applied to loans to finance short-term balances in the clearing transactions between the SBV and the credit institutions is lowered from 7.0% to 6.0% p.a.
2. Decision No. 314/QD-NHNN dated March 14, 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 5.5% p.a. to 5.0% 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 6.5% p.a. to 6.0% p.a.
Le Hang