From March 13, the ceiling interest rate for deposits was adjusted to 13% per year for terms of 1 month or more and 5% for deposits of less than 1 month.

According to the announcement of the State Bank, from March 13, the highest interest rate of banks will be 13% per year, instead of the current 14% for terms of 1 month or more.

For terms under 1 month, the maximum interest rate applied by banks is 5% per year, instead of the previous 6%.

The interest rate ceiling is no longer 14% per year from March 13. Illustration photo:Wisdom

The overnight lending rate in interbank electronic payments also decreased from 16% per year to the highest 15%. The rediscount rate decreased to 12% per year, down 1% compared to before. The refinancing rate was also lowered to 14% per year.

As for the basic interest rate, the State Bank did not mention any reduction. The current basic interest rate is still 9% per year.

Previously, at the regular Government meeting in February on March 6 in Hanoi, the Government requested the State Bank to immediately reduce interest rates. The reason was that in the first two months of the year, the CPI growth rate was the lowest in many years, liquidity, exchange rate, and foreign currency balance were also improved.

Responding at the meeting, State Bank Governor Nguyen Van Binh said that there was enough basis to reduce interest rates. He also revealed that there would soon be a document directing a further 1% reduction in interest rates compared to before.

According to the Governor of the State Bank, the CPI growth rate in the first two months of the year was the lowest in many years, which is an important basis. These days, interbank interest rates have dropped to only 7% to 14% per year, and the liquidity situation in the system has also improved, which is also considered a driving force towards reducing interest rates.

Before March 13, banks mobilized capital at the highest interest rate of 14% per year (term of 1 month or more), 6% (less than 1 month). The refinancing interest rate was 15%, the rediscount rate was 13%.

According to Ebank