The annual rediscount rate, overnight electronic interbank rate, and interest rate for loans to offset capital shortages in clearance between the central bank and domestic banks, would each be cut by 1 percentage point from March 15, the central bank said in a statement.
In early February, ratings agency Fitch had forecast
Vietnam would raise the policy rate by 100 basis points this
year due to a difficult inflation outlook.
The central bank said Tuesday's move was part of efforts to
stabilise interest rates and remove obstacles for both
businesses and individuals.
Earlier in March the government rolled back part of a
corporate bond reform, which had been approved in September, in
a bid to ease pressure on the real estate sector that is being
squeezed by a credit crunch.
The Southeast Asian country has been one of the fastest growing developing nations. For 2022, it reported growth of 8.02%, the fastest in decades. This year it is targeting growth at 6.5%.
Tuesday's statement included a decrease in the cap on
dong loan rates at commercial banks by 50 basis points depending
on loan maturities.
(Reporting by Phuong Nguyen and Khanh Vu; Editing by Francesco
Guarascio, Kanupriya Kapoor and Emelia Sithole-Matarise)
