Vietnam: SBV cuts rates again
May 10, 2013
On 10 May, the State Bank of Vietnam (SBV) reduced its key refinancing rate for the eight consecutive meeting, cutting it by one percentage point to 7.0%. In addition, the SBV also lowered the discount rate to 5.0% from 6.0%. Finally, the Bank reduced the short-term lending rate to 10.0% for several priority sectors, namely agricultural and rural, small and medium enterprises as well as high-tech firms.
The SBV continues to ease its stance in an effort to support growth, amid a restructuring of the country's financial sector. Against this backdrop, the Bank stated that it "has actively taken monetary, credit and banking solutions in accordance with the targets of curbing inflation and easing difficulties for production and business in order to keep economic growth at a proper level in response to the guidance of the Government".
A majority of Consensus Forecast panellists expect the SBV to raise the refinancing rate to 8.17% in 2013. Panellists see the Bank increasing rates further next year to 8.75%.