The interest rate for Vietnamese dong deposits is stable at 4.8-5.5 percent per year for terms of less than 6 months (Photo: VNA) Hanoi (VNS/VNA) - Interestrates for VND deposits would remain stable or even decline over the next fewmonths, analysts from Saigon Securities Inc. (SSI) forecast.
The outlook is different to amonth ago when most believed pressure from interest rate hikes would occur in2019 due to high inflation, global tightened monetary policy and theaccelerating trade war.
However, according to theanalysts, things had changed and the predictions for interest rates in 2019were currently completely different from one or two months ago. Positiveindicators in inflation, GDP, trade and foreign exchange last year, had helpedreduce the pressure, they said.
“With the current context,deposit rates in the coming months will remain unchanged or even lowered,” theysaid.
However, risks from internationaldevelopments still existed and could change very quickly, so it was difficultto make predictions about the development of the rate in the medium and longterm.
The SSI also reported interestrates for VND deposits remained stable at 4.8-5.5 percent per yearfor terms of less than 6 months, 5.5-7.5 percent per year for terms of 6 to 12months and 6.8- 8.0 percent per year for 12 -13 months.
In the inter-bank market, the SSIreport showed the central bank net injected 66.87 trillion VND (2.86 billionUSD) during the two weeks ahead of Tet (LunarNew Year), helping lending interest rates stay at 4.8-5.0 percent per year onthe days before Tet whencapital demand was high.
The overnight interest rate of USdollar loans on the inter-bank market in the days increased by 13 basis points,which was similar to the US Federal Reserve (Fed)’s rate hike.
According to the SSI, the Fedwon’t be raising rates anytime soon, so the gap in USD/VND interest rates inthe local inter-bank market may be narrowed due to the possibility of VND interest rates declining when cashflow returns to the banking system after Tet.-VNS/VNA
The outlook is different to amonth ago when most believed pressure from interest rate hikes would occur in2019 due to high inflation, global tightened monetary policy and theaccelerating trade war.
However, according to theanalysts, things had changed and the predictions for interest rates in 2019were currently completely different from one or two months ago. Positiveindicators in inflation, GDP, trade and foreign exchange last year, had helpedreduce the pressure, they said.
“With the current context,deposit rates in the coming months will remain unchanged or even lowered,” theysaid.
However, risks from internationaldevelopments still existed and could change very quickly, so it was difficultto make predictions about the development of the rate in the medium and longterm.
The SSI also reported interestrates for VND deposits remained stable at 4.8-5.5 percent per yearfor terms of less than 6 months, 5.5-7.5 percent per year for terms of 6 to 12months and 6.8- 8.0 percent per year for 12 -13 months.
In the inter-bank market, the SSIreport showed the central bank net injected 66.87 trillion VND (2.86 billionUSD) during the two weeks ahead of Tet (LunarNew Year), helping lending interest rates stay at 4.8-5.0 percent per year onthe days before Tet whencapital demand was high.
The overnight interest rate of USdollar loans on the inter-bank market in the days increased by 13 basis points,which was similar to the US Federal Reserve (Fed)’s rate hike.
According to the SSI, the Fedwon’t be raising rates anytime soon, so the gap in USD/VND interest rates inthe local inter-bank market may be narrowed due to the possibility of VND interest rates declining when cashflow returns to the banking system after Tet.-VNS/VNA
VNA
