Vietnam interbank overnight rates drop to 0.2% amid market shifts

Vietnam's interbank overnight interest rates for VND saw a significant decline, dropping to 0.2% per year on September 29. This follows a sharp downward trend from a high of 7% on September 21, representing a total decrease of 6.8 percentage points in recent weeks.

In a separate development, HDBank has updated its deposit interest rates for September 30. For in-branch transactions, rates range from 3.5% per year for 1-2 month terms to a peak of 5.5% per year for 18-month terms.

Regarding broader market trends, experts suggest that while some deposit rates have reached approximately 9% per year and lending rates are between 12-13%, the market is experiencing pressure and differentiation rather than an uncontrolled spike. This movement is attributed to the rebalancing of capital supply and demand as credit needs recover and banks work to maintain liquidity and safety ratios.