Vietnam Forecast to Cut Further Benchmark Interest Rate in Q1-HSBC, SSI
Vietnam is forecast to cut benchmark interest rate further to 7 per cent-7.5 per cent from current 8.5 per cent in the first quarter as part of efforts to boost production and consumption to combat economic slowdown, HSBC and Saigon Securities Inc said.
In a report on Vietnam’s outlook in Q1, HSBC said Vietnam will continue loosening the monetary policies and cut the base rate to 7.5 per cent right in the first quarter this year, the Lao Dong newspaper said.
Meanwhile, Vietnam’s leading Saigon Securities Inc predicted that Vietnam will cut strongly the prime rate to 7 per cent right in January and devalue the dong to support exporters which face numerous difficulties, the newspaper noted.
HSBC also predicted that Vietnam’s economy will grow 5.4 per cent during the time behind China with GDP growth of 7.8 per cent and India with GDP growth of 5.9 per cent.
Vietnam’s second biggest state-owned bank by assets-BIDV-has cut lending rate of dong loans to 6.5 per cent effective from today January 9, signaling the cut by the State Bank of Vietnam, the central bank, traders said. (Labor)
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