Average overnight interest rate on the interbank market soared above 10% a year before the State Bank’s decision to increase key interest rates, the online newspaper Vneconomy reported on November 09.
According to the State Bank of Vietnam’s data updated November 8 afternoon, the results of trading volume in the interbank market continued to have significant fluctuations.
Specifically, the results of the latest updates on November 3 showed that the average interest rates have increased very strongly.
The average overnight interest rate in dong surged to 10.17% per annum.
This is seen as the highest level since February 2010, much higher than the average rate of 8% -8.3% per year in the last days of October.
The noteworthy point is that the above interest rate increase took place before the State Bank decided to increase key interest rates, effective from November 5.
Besides the average overnight interest rate, the average interest rate of short-terms also posted sharp increases compared to the last trading days in October. In particular, the average interest rates of one week and two weeks on November 3 officially exceeded the milestone of 10% per year, respectively 10.87% and 10.63% per year rather than 10% in the previous year, and the rate of one-month period has also now crossed the milestone of 11% per year.
Conversely, on the same day, the average interest rate in the periods of three, six and 12 months did not show big changes, while three and six-month terms sometimes saw a downward trend in interest rates.
Immediately after the State Bank of Vietnam decided to raise interest rates by 1% to 9% per year, a series of commercial banks started to hike new deposit interest rates to 12% per year on the market. The average loan interest rate on the local market is now ranging from 15% to 17% per year.