Banks across the board cut deposit interest rates

The average reduction has been 0.5 percentage points for deposits of less than six months after the State Bank of Vietnam lowered its policy rates last week for a second time this year.

For terms of six months and above lenders have reduced the rates by 0.2-0.3 percentage points compared to two weeks ago.

The four state-owned lenders, Vietcombank, Agribank, BIDV and VietinBank, reduced them by 0.4 percentage points.

Their highest interest rate is now 7%.

Private lenders such as GPBank, SeABank and ABBank have reduced their rates to 8.2-8.5%.

With inflation shows signs of cooling down, the SBV on May 25 reduced its interest rate ceiling on deposits of under six months from 5.5% to 5%.

The reduction in deposit interest rates will enable banks to cut loan interest rates, which in turn would boost economic recovery.