Vietnam government asks c.bank to further cut rates this month
Friday, June 16, 2023, 14:39 GMT+7
HANOI -- Vietnam's government on Friday said it has told the central bank to further cut its policy interest rates this month to shore up a slowing economy.
The State Bank of Vietnam (SBV) has so far this year cut rates three times. It last cut the refinance rate by 50 basis points to 5.0% on May 25.
Vietnam's economic growth slipped to 3.3% from 5.9% in the fourth quarter due to weak demand in key export markets, while manufacturers have been dealing with electricity cuts due to power shortages.
The government has requested the central bank "immediately take practical measures to lower interest rates level, with a round of policy rate cuts this month," the government said in the statement.
It said credit growth in the first five months of this year was too low, adding the central bank would have to address that.
Vietnam's economic growth is largely reliant on credit growth. The central bank targets credit growth of 14%-15% this year.
