On 29 June, the State Bank of Vietnam (SBV) reduced its key refinancing rate by one percentage point to 10%. In addition, the SBV cut the discount rate to 8.0% from 9.0%. The move follows on a previous cut on 1 June and represents the fifth rate cut since the beginning of the year. Monetary authorities lowered rates in an effort to revive economic growth, which slowed to a 4.4% increase in the first half of 2012, down from the 5.6% expansion seen in the January-June 2011 period. With inflation firmly on its way down, the SBV has ample room for manoeuvre. While Vietnam still boasts one of the highest levels in the region, inflation has plummeted from an almost three-year high 23.0% recorded in August 2011 to the 6.9% recorded in June.
Vietnam Monetary Policy
SBV cuts rates for fifth time this year
June 29, 2012
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Vietnam Monetary Policy Chart
Note: Refinancing Rate, in %.
Source: State Bank of Vietnam (SBV).
Vietnam Economic News
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.
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.
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.