Vietnam’s central bank said late on Monday it will lower the ceiling on interest rates that banks can offer on dong deposits for 1-month and 6-month terms.
The ceiling on 1-month terms will be cut by 0.2 percentage point from 1.0%, while rates for 6-month maturity will be reduced from 5.5% to 5%, the bank said in a statement.
The State Bank of Vietnam will also cut the short-term lending rate for small and medium-sized enterprises from 6.5% per annum to 6% to support growth, it added.
The new rates will come into effect on Nov. 19.
Earlier, the State Bank cut several interest rates to increase liquidity and support economic growth, which the country hopes will stay near 7% this year.