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| Inter-bank interest rates unexpectedly declined by 0.2-0.7 per cent for all tenors in the past week thanks to improved liquidity. - Photo vaynhanh24h.com |
Viet Nam News
HÀ NỘI – Inter-bank interest rates unexpectedly declined by 0.2-0.7 per cent for all tenors in the past week thanks to improved liquidity, according to a new report from the Bảo Việt Securities Company (BVSC).
Accordingly, the rate for overnight loans reduced by 0.7 per cent to 4.4 per cent per year, by 0.41 per cent to 4.4 per cent for one-week loans and by 0.2 per cent to 4.86 per cent for two-week loans.
“The decline of inter-bank interest rates further reinforced our opinion that the liquidity of the banking system improved in the past week. However, due to year-end seasonal factors, we believe that inter-bank rates from now until the Lunar New Year [that falls in late January 2017] will continue to anchor at a high level, ranging from 4.5 to 5 per cent per year,” BVSC analysts said in the report.
The liquidity of the banking system in the next few weeks will remain under pressure and therefore it sometimes will still need support from the central bank, analysts forecast.
The State Bank of Việt Nam (SBV) last week also injected over VNĐ2.7 trillion (US$118.94 million) via Open Market Operation (OMO) to support liquidity of the banking system.
The past week also saw the central bank successfully issue 14-day T-bonds worth VNĐ8 trillion at interest rates of 1.75 per cent per year. – VNS
