Vietnam: SBV cuts rates twice in less than a month
June 8, 2012
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%.
Author: Armando Ciccarelli, Head of Data Solutions