Central bank increases deposit interest rate ceiling

This is the second increase in a month amid rising global inflation and the U.S. dollar hike, the bank said Monday.

Quyết định tăng lãi suất điều hành được Ngân hàng Nhà nước giải thích do áp lực lạm phát toàn cầu ở mức cao và đồng USD lên giá mạnh. C

Trần lãi suất tiền gửi dưới 6 tháng lên 6% một năm từ ngày mai 25/10 sau khi Ngân hàng Nhà nước lần thứ hai trong một tháng tăng loạt lãi suất điều hành.

Effective Tuesday, the refinancing rate will be increased to 6.0% and the discount rate to 4.5%, the State Bank of Vietnam (SBV) said in a statement.

Vietnam, like most of its Southeast Asian neighbours, has faced upward pressure on inflation and has seen its currency take a hit in recent months, with the dong losing 9% against the dollar this year.

The SBV said the global inflation level remains high and the Fed had raised its rates five times recently, with more hikes expected during the rest of this year and 2023.

“This, coupled with the strengthening of the dollar, has put pressure on domestic interest rates and exchange rate,” SBV said.

Vietnam’s prime minister last week said Vietnam would keep prices in check and pursue flexible, prudent monetary policy throughout next year, noting that uncertainty over energy prices and the war in Ukraine were behind inflationary pressure.