HANOI, June 16 (Xinhua) -- The State Bank of Vietnam (SBV) on Friday said it would cut several policy interest rates by 50 basis points from next Monday as the Southeast Asian country ramps up stimulus measures to shore up its export-driven economy.
The refinancing rate would be cut to 4.5 percent, the discount rate to 3 percent, and the overnight electronic interbank rate to 5 percent, the SBV said in an online statement.
The central bank also said it would lower the cap on interest rates that commercial banks can offer on dong deposits with maturities ranging from one month to six months to 4.75 percent from 5 percent.
The widely-expected move is aimed at boosting loans to households and businesses amid slowing economic growth tied to a slump in exports and a contraction of the real estate market, experts said.
According to the central bank, the credit growth in the banking system in the first five months of the year was up 3.17 percent from the end of last year, lower than the growth of about 8 percent in the same period a year ago.
In an attempt to counter the headwinds facing the economy, Vietnam's central bank has cut its policy interest rates four times so far this year.
Last month, the central bank also ordered commercial lenders to restructure loans through June 2024, including delaying loan repayments by up to 12 months for some businesses faced with difficulties amid an economic slowdown.
Vietnam's economy in the first quarter grew 3.32 percent, slowing from a growth of 5.92 percent in late 2022 and 5.03 percent in the first quarter last year, the General Statistics Office said.
Its exports in the January-May period dwindled 11.6 percent from a year earlier as weak demand in key export markets has crimped most of its biggest earners including smartphones, electronics, garments, footwear and wooden products. ■
