Official: Vietnam May Further Cut Benchmark Interest Rate to 10 per cent Soon

Vietnam will possibly slash a full percentage point of the benchmark interest rate to 10 per cent from current 11 per cent if Nov CPI is at minus or zero levels in order to revitalize the economic growth, Voice of Vietnam said, citing a senior official of the Ministry of Planning and Investment, a think tank of the government.

  

Banks are cutting deposit and lending rates to support local businesses, which is a good trend. However, banks should be cautious about, and should not lend massively, Ly noted.

 

After the State Bank of Vietnam, the country's central bank cut benchmark rate to 11 per cent, commercial banks sharply slashed lending rates of dong and dollar loans. Some of them axed lending rates to 12.6 per cent per annum.

 

Over the couple of weeks, Vietnam had cut benchmark rates thrice to boost growth in the face of the global crisis, state media said.

 

Prime Minister Nguyen Tan Dung recently urged to boost investments to avoid economic downturn, and assured that Vietnam will loosen monetary policy, but under tight control. (VoV)