On 8 June, the State Bank of Vietnam (SBV) reduced its key refinancing rate by two percentage points to 11% from 12%. In addition, the SBV cut the discount rate to 9% from 10%. The move represents the second time in less than a month in which the Central Bank lowers interest rates, following a previous cut on 25 May. Monetary authorities cut rates in an effort to revive economic growth, as the continued improvement in the inflation scenario provides the SBV with large room for manoeuvre. While Vietnam still boasts the highest inflation in the region, prices have plummeted from an almost three-year high 23.0% recorded in August 2011 to the current 8.3%.
Vietnam Monetary Policy
SBV cuts rates twice in less than a month
June 8, 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
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.