VCSC Daily - SBV sets lending cap at 13%, markets closed mixed
SBV lower deposit rate cap by 2%, policy rates by 1%, sets new lending cap at 13%. Last Friday, the central bank issued Circular 19/2012/TT-NHNN, setting the new deposit interest rate cap for 1-month to 12-month terms at 9% which became effective today. For terms below 1-month, the maximum deposit rate will be no higher than 2%. According to Governor Nguyen Van Binh, the decision to slash the interest rate is in coordination with expectations that interest rate will drop to 7-8% by year end.