State Bank cuts interest rates to support businesses amidst COVID-19 outbreak

18/03/2020 12:03

The State Bank of Viet Nam (SBV) has cut its policy rates starting March 17 with a view to supporting businesses amidst COVID-19 pandemic

The COVID-19 pandemic is evolving complicatedly, leaving negative impacts on the global economy, the central bank said, citing the fact that to prevent recession, many foreign governments have adopted economic stimulus policies, one of which is policy rate cuts made by central banks. 

Specifically, the central bank reduced the benchmark refinance rate to 5% from 6% and the discount rate to 3.4% from 4%.
The overnight lending rate in the inter-bank market was lowered to 6% from 7% and the open-market-operation (OMO) rate, to 3.5% from 4%.
In addition, the bank reduced the caps on the interest rate of Vietnamese Dong-denominated deposits and loans by 0.25 – 0.5 percentage points, depending on the maturities.
Earlier, a series of commercial banks launched credit packages on preferential loans with a view to supporting businesses amidst COVID-19 epidemic./.
Source: chinhphu.vn



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