Overnight rate skyrockets to 4.44%

Friday, Oct 26, 2018 15:03

The central bank last week net injected VND250 billion into the market. — VNA/VNS Photo

Liquidity in the banking system is getting tighter, causing interest rates on the inter-bank market to surge.

Statistics from the State Bank of Viet Nam (SBV) showed that rates for all terms on the market have recently increased.

On Wednesday, the overnight rate skyrocketed to 4.44 per cent per year, up 0.74 percentage points against the previous day and 1.26 percentage points against last Friday.

The overnight rate was even higher than the one-month and two-month deposit rate of 4.4 per cent per year listed at Vietcombank.

Interest rates for one-week loans also surged by 0.2 and 0.55 percentage points against the previous day and last Friday, respectively.

However, inter-bank transactions during the day declined by more than 30 per cent against the previous day to VND15.71 trillion (US$671 million).

Last week, the rates also increased by 0.27-0.34 percentage points, pushing SBV to net inject VND250 billion into the market.

According to analysts at Bao Viet Securities Company, the rate hike in the inter-bank market and the SBV’s net injection showed that the liquidity of the banking system is tight. — VNS

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