Recently, on October 24, 2022, the State Bank of Vietnam (SBV) issues Decision No.1812/QD- NHNN on the maximum interest rate applicable to VND deposits. In accordance with this Decision: Increase the maximum interest rate applicable to deposits with a term of one month to less than six months shall be from 5.0% per annum to 6.0% per annum.

Some analysts also believe that the SBV is likely to continue to increase the interest rates in the quarters ahead.

In your opinion:

Discuss the effect of this Decision on both surplus and deficit economic units?

If the SBV is likely to continue to increase the interest rate, what is the effect on the level of interest rate? (Use theory and diagram to explain)