A growing wave of deposit interest rate cuts is sweeping the market following the central bank’s meeting on February 25. Is this just a knee-jerk reaction? Or has the interest rate hike trend that began in late Q1 last year truly reversed? First response to policy adjustments Deposit interest rates at Bac A Bank dropped further in early March, decreasing by 0.25 percentage point for terms of less than 12 months and by 0.3 percentage point for longer terms. This marks the bank’s second rate cut since the start of the year, following a reduction in late January. In total, Bac A Bank has lowered rates by 0.4 percentage point, bringing them back to mid-2024 levels. Similarly, VietBank reduced its rates by 0.2 percentage point for deposits of one to four months, 0.3 percentage point for 5-9 months, and 0.2 percentage point for 12-month terms. VIB adjusted its rates downward by 0.1 percentage point for 6-11 month deposits, from 4.8% to 4.7% per annum. SaiGonBank also cut its 12- and 13-month term rates by 0.2 percentage point, to 5.6% and 5.8% per annum, respectively. These rate reductions have drawn market attention, particularly as broader interest rates across financial markets have […]
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