Immediately after the deposit interest rate cap is lowered to 9 percent per annum (p.a.), from Monday June 11, the interbank interest rates surged in line with it.
On June 11, the interest rates in the interbank market soared sharply in many terms. Particularly, according to Reuters, many transactions showed that the overnight interest rate was up to 3 percent p.a., from the level of 1.5 percent p.a. in last weekend, one week term up to 3.5 percent p.a. from 1.5 percent p.a. and one month term up to 5-5.5 percent p.a. from 4-4.5 percent p.a.
This evolution happened in the date of imposing the deposit interest rate cap of 9 percent p.a. and 1 percent reduction on other key rates.
At the same time, on June 11, the State Bank of Vietnam (SBV) also lowered the interest rate on open market operations (OMO) to 10 percent p.a., the lowest since January 5, 2011.
Currently, the interest rates on OMO have no longer attracted the attention of the market as OMO transactions have very small value and even there were no transactions for many days.
Also on OMO, the central bank still maintained issuing treasury-bills for tenors of 28-days, 91-days and 182-days with value of three trillion dong per week. According to the data of Reuters, the current value of these T-bills reached over 70 trillion dong and it has not been matured yet. This amount of money will return to commercial banks in the next several months.
Reportedly, in recently released report, Hong Kong and Shang Hai Banking Limited Group (HSBC) said that with easing inflation pressure, the central bank will cut interest rate further by 2 percent in the coming months.