7:41:48 PM | 18/9/2008
The State Bank of Vietnam, the central bank, will adjust interest rate following the trend of consumer price index in coming time, said Ho Chi Minh City Huu Hanh, director of the bank’s Ho Chi Minh City branch.
The central bank will not regulate base interest rate towards positive real interest, but towards CPI tendency, he said.
The official predicted that CPI will fall significantly in September because prices of gasoline were reduced twice in August, global crude oil and other domestic commodity prices are falling.
The central bank will not cut base interest rate sharply to help protect commercial banks from difficulties. It will calculate to lower the interest rate at a suitable level to benefit both commercial banks and businesses.
Several large banks have cut their deposit interest rate, leading to lower lending interest rates, which will prompt other banks to follow the trend, Hanh said.
Liquidity of local banks has become better, therefore several banks are lending at low interest rates, the official said. (Saigon Economic Times)
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