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Vietnam’s central bank cuts official interest rates

by Vietnam Insider

Vietnam’s central bank said on Friday it would cut several interest rates to support economic growth and control inflation.

The annual refinancing rate, rediscount rate, overnight electronic interbank rate, and rate of loans to offset capital shortage in clearance between the central bank and domestic banks, would be cut by 0.25 percentage points each from Sept 16, the State Bank of Vietnam (SBV) said in a statement.

According a report by VNS, the SBV said in the previous period, it has carried out synchronous measures to stabilize the interest rates, contributing to keeping the macro economy stable and support a suitable growth rate.

It noted that entering the current period, the world economy has seen less favourable developments, and the central banks of many countries, including the Fed of the US and the European Central Bank, have cut their interest rates.

The bank affirmed that the domestic macro economy remains stable, inflation is under control, and the monetary and foreign exchange markets stay stable.

The rate cuts are the first by the SBV since October 2017.

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