Bank Sector_Policy Rate Increase

On Sep 22, the SBV announced policy rate hikes effective from Sep 23. This is the SBV’s first policy rate hike since 2020.

The SBV has increased three policy rates: 1) rediscount rate (+1ppt to 3.5%/year), 2) refinancing rate (+1ppt to 5.0%/year), and 3) overnight rate for interbank electronic payments and lending to compensate for capital shortages in clearing payments (+1ppt to 6.0%/year).

In addition, the SBV changed the dial on deposit rates. 1) The maximum rate for demand deposits and term deposits of less than 1 month increased by +30bps to 0.5%/year, and 2) Term deposits of 1-to-less than 6 months are capped at 5.0%/year (+1ppt).

For the complete report, please access here: Bank_Sector_Increase Policy rates

Analyst: Tanh Tran, tanh.tran@yuanta.com.vn