According to the policy of the National Assembly, the direction of the Government and the Prime Minister on reducing interest rates, supporting people and businesses to increase access to capital, contributing to the recovery of production and business. On that basis, the State Bank of Vietnam (SBV) has just issued decisions to adjust interest rates in order to contribute to controlling inflation, stabilizing the macro economy, and the money market to strive to reduce interest rates lending to businesses and people, supporting economic growth recovery.

Decisions on interest rate adjustment include: Decision No. 1123/QD-NHNN; Decision No. 1124/QD-NHNN; Decision No. 1125/QD-NHNN.

Accordingly, the above decisions have the following points for adjusting interest rates:

(i)    Decision 1123/QD-NHNN: Adjusting interest rates for refinancing, rediscounting, overnight lending:

- Refinancing interest rate reduced from 5.0%/year to 4.5%/year;

- Rediscount interest rate reduced from 3.5%/year to 3.0%/year;

- Interest rates for overnight loans in inter-bank electronic payments and loans to cover capital shortfalls in clearing payments by the SBV for credit institutions decreased from 5.5%/year to 5%/year.

(ii)    Decision 1124/QD-NHNN: Adjustment of deposit interest rates

- The maximum interest rate applicable to demand deposits and deposits with a term of less than 1 month remains at 0.5%/year;

- The maximum interest rate applicable to deposits with a term from 1 month to less than 6 months will be reduced from 5.0%/year to 4.75%/year; Particularly, people's credit funds and microfinance institutions decreased from 5.5%/year to 5.25%/year.

(iii)    Decision 1125/QD-NHNN: Adjusting short-term lending interest rates

- The maximum short-term lending interest rate in Vietnam dong of credit institutions, foreign bank branches (except for People's Credit Funds, Microfinance Institutions) will be reduced from 4.5%/year to 4.0%/year;

- The maximum short-term lending interest rate in Vietnam dong of People's Credit Funds and Microfinance Institutions decreased from 5.5%/year to 5.0%/year.

    Decision 1123/QD-NHNN, Decision 1124/QD-NHNN, and Decision 1125/QD-NHNN take effect from 19/06/2023.