Central bank cuts rates yet again

Central bank cuts rates yet again

Central bank cuts rates yet again

Central bank cuts rates yet again

Central bank cuts rates yet again

Central bank cuts rates yet again

By Dat Nguyen  &nbspOctober 1, 2020 | 10:02 am GMT+7

Central bank cuts rates yet again

An employee counts Vietnamese banknotes at a bank in Hanoi. Photo by VnExpress/Giang Huy.
An employee counts Vietnamese banknotes at a bank in Hanoi. Photo by VnExpress/Giang Huy.

It cut the refinancing rate from 4.5 percent to 4 percent and the discount rate from 3 percent to 2.5 percent. It also lowered caps on the interest banks pay on dong deposits from 4.25 percent to 4 percent for periods of one to six months.

For longer maturities, banks are allowed to decide their own rates depending on the market. Major banks are keeping the rate at 6 percent for 12-month deposits.

The central bank reduced the overnight electronic interbank rate from 5.5 to 5 percent. The previous rate cuts were in March, May and August.

This year the country recorded the lowest first nine-month growth rate in a decade of 2.12 percent.

The government said earlier last month it expected economic growth of 2-2.5 percent for this year. Last year it had topped 7 percent.

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