The State Bank of Vietnam (SBV) announced on Friday that it is cutting its refinance and discount rates by 50 basis points from Monday to spur the country’s growth amid prolonged global economic headwinds.
The refinance rate will be cut to 4.5%, the discount rate to 3%, and the overnight electronic interbank rate to 5%. It is the central bank’s fourth policy rate adjustment this year.
A 25-basis point cut will be applied on Monday for a maximum rate for deposits with terms from one month to less than 6 months to 4.75% per annum.
Similarly, the maximum rate for VND deposits at people's credit funds and microfinance institutions will go down to 5.25% per annum from 5.5%.
The maximum rate for VND short-term loans from banks in a number of economic sectors will fall to 4% per annum from 4.5%. Meanwhile, rates at credit funds and microfinance institutions for similar needs will be lowered to 5% from 5.5%.