Vietnam Keeps Base Interest Rates Unchanged at 12 per cent in June

The State Bank of Vietnam, or central bank, will keep the base interest rate for Vietnam dong unchanged at 12 per cent per annum in June, state media said.

 

The re-financing interest rate for credit institutions is maintained at 13 per cent per annum and the discount rate kept at 11 per cent, the Dau Tu Tai Chinh newspaper said.

 

Credit institutions must limit their deposit and lending interest rates less than 150 per cent of the base rate, or below 18 per cent a year.

 

The central bank said after it raised the base interest rate from 8.75 per cent to 12 per cent from May 19, the monetary market is comparatively stable.

 

The interest rates for Vietnam dong are popular at 4 per cent per annum for demand deposits, 13.43 per cent for three-month terms, 13.53 per cent for six months and 13.67 per cent for 12 months.

 

However, several banks are offering very high interest rates.

 

Saigon Commercial Bank (SCB) has just surpassed SeABank, which offers the deposit rate at 15.6 per cent per year to become the highest interest rate provider in Vietnam. SCB boosted the two-month deposit rate for Vietnam dong to 16 per cent per annum and the thee-month rate for USD to 7.75 per cent a year. (Financial Investment, Vietnam Economic Times)