State Bank of Vietnam cuts series of key interest rates by 0.25-0.5%

19 Jun '23

1 min read

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The State Bank of Vietnam cut a series of key interest rates by 0.25-0.5 per cent starting today to boost the economy and help people and businesses access capital at lower interest rates.
This was the fourth consecutive cut within four months.
Several experts feel the need for stronger fiscal policies to encourage consumption and production.

The State Bank of Vietnam (SBV) decided to reduce a series of key interest rates by 0.25-0.5 per cent beginning today. The decision is expected to boost the economy and offer conducive conditions for people and businesses to access capital at lower interest rates.

The latest reduction was the fourth consecutive within four months. The decision was welcomed by businesses.

The four main reasons behind the decision are the US Federal Reserve’s ending of interest rate hike after 10 consecutive increases, a downturn trend of inflation since February, the stable domestic currency demand and stronger liquidity of the banking system, and a drop in exports and investment in industrial production in May, experts say.

An academic at a leading university hoped that the rates will return to the 2019 level by the end of this year, but with the speed of reduction speed witnessed in recent times, that may happen by the end of the third quarter, a domestic news agency reported.

Several experts also feel the need for stronger fiscal policies to encourage consumption and production, and accelerating public investment.

ALCHEMPro News Desk (DS)

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