HANOI, March 14 (Xinhua) — The State Financial institution of Vietnam on Tuesday mentioned it will reduce its coverage charges by 100 foundation factors from Wednesday to deal with the liquidity drawback for households and companies.
The low cost fee can be reduce to three.5 p.c from 4.5 p.c, the interbank in a single day lending fee to six p.c from 7 p.c, whereas the refinancing fee can be saved unchanged at 6 p.c, the central financial institution mentioned in a press release posted on its web site.
The central financial institution will even cap financial institution dong mortgage charges at 5 p.c, down from 5.5 p.c.
The transfer is a part of the federal government’s effort to “disentangle difficulties which have arisen within the economic system, chopping lending charges for companies and households”, the central financial institution mentioned.
The central financial institution’s final reduce of the charges was in 2020 to help the economic system via the COVID-19 pandemic.
Final yr, as Vietnam was confronted with upward stress on inflation and downward stress on its forex, the central financial institution, taking related steps by coverage makers all over the world, raised coverage charges in September and widened the trade fee buying and selling band in October.
Vietnam will attempt to maintain its financial progress at 6.5 p.c this yr, backed by public funding, overseas direct funding, exports and home consumption.
Shopper worth index in February rose 4.31 p.c from a yr in the past and 0.97 p.c increased than the tip of final yr, the federal government is striving for the focused 4.5 p.c for the yr.