SBV’s fourth policy rate cuts in 2023

The SBV has announced another policy rate cut effective Jun 19. This is after the SBV reduced policy rates in March, April, and May of 2023.

The policy applies to several key SBV rates: 1) the refinancing rate is cut by -50bps to 4.5%/year, 2) the rediscount rate is reduced by -50bps to 3.0%/year, 3) the cap on term deposits of 1M to less than 6M is reduced by -25bps to 4.75%/year, and 4) the overnight rate for interbank electronic payments and lending to compensate for capital shortages in clearing payments is lowered by -50bps to 5.0%/year.

In addition, the SBV has lowered the cap on lending rates for certain favored sectors to 4.0%/year (-50bps).

For the complete report, please access here: Bank_Sector_Fourth Policy rate cut_Jun 23

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