Vietnam Central Bank Cuts Benchmark Rates to 11 per cent

The State Bank of Vietnam, the country's central bank, has just decided to cut benchmark rates to 11 per cent from 12 per cent, and lower by 2 per cent of compulsory reserves among banks, effective from November 21 in order to prevent crisis impacts and boost domestic growth.

SBV also okayed to slash by 1 per cent of refinancing, discount and overnight rates to 12 per cent, 10 per cent and 12 per cent, which immediately pushed lending rates to 13 per cent from more than 14 per cent per annum.

For 12-month deposits, SBV requested local banks and credit institutions to use 2 per cent of total deposits down from currently 4 per cent.

BIDV on November 20 announced to cut lending rates to 13 per cent per annum for the eighth time. (SBV)