Interbank rate climbs up to 13%
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Nine-month interbank rate has climbed from 9.61% to 13% annually as of February 2, according to the central bank’s latest data.
On February 2 banks borrowed VND225.7 trillion ($9.6 billion) from each other overnight at the rate of 6.26% per year, up 1.7% points from the end of last year.
Other terms such as two weeks, one week, six months and nine months have seen rates increased from before the Lunar New Year holidays, which lasted from January 20-26.
Interbank rates are rising even though the State Bank of Vietnam had pumped liquidity in five trading sessions after Tet holiday with a total supply of nearly VND70.8 trillion.
Analysts have said that interbank rate will unlikely fall soon as globally central banks will likely continue to raise their rates.
Deposit rates are forecast to peak in the middle of this year before cooling down.
Questions & Answers
Q.When did the nine-month interbank rate reach 13% annually?
When did the nine-month interbank rate reach 13% annually?
The nine-month interbank rate climbed to 13% annually as of February 2, according to the central bank's most recent data. This represents an increase from 9.61% previously.
Q.How much money did banks borrow from each other overnight on February 2, and at what rate?
How much money did banks borrow from each other overnight on February 2, and at what rate?
On February 2, banks borrowed VND225.7 trillion from each other overnight. This borrowing occurred at a rate of 6.26% per year, which is 1.7 percentage points higher than the rate at the end of last year.
Q.Have interbank rates for all terms increased, or just the nine-month rate?
Have interbank rates for all terms increased, or just the nine-month rate?
Interbank rates for several terms have increased, not just the nine-month rate. Terms such as two weeks, one week, six months, and nine months have all seen their rates rise since before the Lunar New Year holidays.
Q.What is the forecast for deposit rates?
What is the forecast for deposit rates?
Deposit rates are predicted to reach their highest point around the middle of this year. After peaking, it is expected that these rates will then begin to decrease and cool down.
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