Vietnam Gets a Second Central Bank Rate Reduction
April 11, 2012
The State Bank of Vietnam engineered the second 100-basis point cut of its refinancing rate. The first ease was announced March 12, and two more such moves seem likely this year. The benchmark rate had been slashed from 15% to 7% between October 2008 and April 2009 but in seven subsequent increases returned to 15% by October 2011. Vietnamese growth of 4% last quarter was lower than desired, and inflation has decelerated from over 20% to 14.2%. That exceeds the new refinancing rate level, so it will be a couple of more months before monetary officials sanction their next rate reduction.
Copyright 2012, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: State Bank of Vietnam
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