The analysis centre of Saigon Securities Incorporation (SSI Research) has released the monetary market report for the week of June 22nd 26th. Accordingly, the State Bank of Vietnam (SBV) did not conduct any transaction on the Open Market Operation (OMO), so the balances of OMO and bills were both kept at zero. The abundant liquidity caused interest rates to further decline on the interbank market, closing the week at 0.21 percent per annum on overnight term, down by four basis points and 0.32 percent per annum on one-week term, down by eight basis points.
Some commercial banks lowered deposit interest rates by 10 20 basis points on terms of 12 and 13 months. Thus, commercial banks have cut deposit rates by 30 50 basis points in June and by 60 130 basis points from the beginning of the year until now. Currently, deposit rates are maintained at 3.5 4.25 percent per annum on terms of six months or less, and 4.9 6.9 percent per annum on terms of six to less than 12 months, and six to 7.6 percent per annum on terms of 12 and 13 months.
According to information of the General Statistical Office (GSO), the credit growth rate as of June 19th was 2.45 percent compared to the end of 2019, showing that credit has continuously improved since the second half of May until now.
The credit growth plans of banks set at their recent annual general meetings (AGMs) are still fairly positive, showing an optimistic prospect in the last six months of 2020. In addition, the disbursement of public investment has been promoted. The increase in mobilisation demand may cause interest rates in the second half of 2020 to inch up but will generally remain low.
