On 17 March, the State Bank of Vietnam (SBV) decided to reduce its key refinancing rate on dong loans for the ninth consecutive meeting, cutting it by 0.50 percentage points from 7.0% to 6.5%. In addition, the Bank reduced the short-term lending rate from 9.0% to 8.0% in order to, “meet the capital needs of agricultural and rural developments, exports, the supporting industries, small and medium enterprises, and high-tech enterprises.” The SBV continues to ease its stance in an effort to support growth amid slowing domestic demand and falling foreign direct investment. The Bank acknowledged that inflation has been under control recently. In February, CPI rose 0.55% on a monthly basis and 4.7% over the same month last year. Lower interest rates could help the country meet the government's 5.8% growth target. FocusEconomics Consensus Forecast panelists expect a refinancing rate of 7.00% in 2014. Panelists see the Bank increasing rates next year to 7.17%.
Vietnam Monetary Policy
SBV cuts interest rates to boost the economy
March 18, 2014
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Vietnam Economic News
October 3, 2016
The Nikkei manufacturing Purchasing Managers’ Index (PMI) increased from August’s 52.2 to 52.9 in September and reached a 16-month high.
October 3, 2016
In Q3 2016, GDP expanded 6.4% over the same period of the previous year, according to data released by the General Statistics Office (GSO) of Vietnam.
September 29, 2016
In September, industrial output rose 7.6% over the same month last year, which was above the 7.3% rise recorded in August.
September 1, 2016
The Nikkei manufacturing Purchasing Managers’ Index (PMI) climbed up from July’s 51.9 to 52.2 in August, reflecting a modest improvement in the operating conditions in the manufacturing sector.
August 29, 2016
In August, industrial output rose 7.3% over the same month last year, which was just a notch above the 7.2% rise recorded in July.