SBV's headquarters in Ha Noi. — VNA Photo

The State Bank of Vietnam (SBV) slashed interest rates for the second time since September.

Non-term deposit annual interest rate was reduced from 1.0 per cent to 0.8 per cent; under-6-month deposit from 5.5 per cent to 5.0 per cent.

Under SBV's Decision 2416, the annual interest rate was slashed by half a percentage point to 6.0 per cent for borrowers in priority sectors such as agriculture, export and supporting industries as well as hi-tech firms and small-to-medium-sized enterprises.

In response to SBV's cut, commercial banks have adjusted their own rates.

Vietcombank announced yesterday it has cut interest rates by half a percentage point for business borrowers of VND for the last two months of the year. The cut would also apply to all loans taken out since November 1.

For borrowers in priority sectors, Vietcombank’s ceiling interest rate was reduced to 5.0 per cent. This is the third time the bank has cut interest rate for priority sector businesses this year. Each time the rate was slashed by half a percentage point for a total of 1.5 per cent rate cut.

VietinBank slashed interest rates on deposits by 0.2 per cent to 4.3-4.8 per cent annually for 1-3 month and 5.3 per cent for 6-9 month deposits.

Several other commercial banks also cut 0.1-0.3 percentage point for longer-term deposits over 12 months. — VNS