From September 23, the refinance interest rate is 5 percent per annum, and the rediscount interest rate is 3.5 percent per annum, an increase of 1 percent compared to the current interest rates. The overnight electronic interbank rate and rate of loans to offset the capital shortage in clearance between the central bank and credit institutions and foreign bank branches are kept unchanged at 5 percent per annum.
These are the main contents of Decision No.1606/QD-NHNN, signed by SBV Deputy Governor Pham Thanh Ha on September 22.
On the afternoon of September 22, the leader of the SBV also signed Decision No.1607/QD-NHNN on the maximum interest rate for deposits in VND of organizations and individuals at credit institutions and foreign bank branches. Specifically, the maximum interest rate applied for demand deposits with terms of less than one month is 0.5 percent per annum, and the maximum interest rate for deposits with a term from one month to less than six months is 5 percent per annum. As for People's Credit Funds and Microfinance Institutions, the maximum interest rate for deposits with a term from one month to less than six months is 5.5 percent per annum. The decision takes effect from September 23.
This move of the SBV follows the direction of Prime Minister Pham Minh Chinh at the Government's thematic meeting on September 22. Accordingly, the Prime Minister requested to operate monetary policy cautiously and firmly, ensuring proactivity, flexibility, and efficiency. Specifically, the SBV must actively, flexibly, and appropriately operate exchange rate, interest rate, and credit growth tools to control inflation and achieve the set targets; choose a reasonable and effective credit capital allocation, focusing on production and business activities and priority areas.
The SBV will study to increase operating interest rates and deposit interest rates but try to keep the lending interest rates stable and call on credit institutions to continue to upgrade technology, increase operational and governance efficiency to reduce costs, and research to reduce interest rates for some subjects and the production and business activities to support people and businesses to recover after the pandemic; promote and cut procedures for loans in the 2-percent interest rate support package; strengthen propaganda for people to understand, trust, share, and support the Party and State's policies on monetary and credit policies.