Vietnam central bank to lower key rates: state radio

HANOI (REUTERS) - Vietnam's central bank will lower the ceiling on interest rates that banks can offer on dong deposits to 6.0 per cent per annum from 7.0 per cent now, state-run Voice of Vietnam radio said on Monday.

The State Bank of Vietnam will also cut its refinance rate on dong loans to 6.5 per cent from 7 per cent, and lower the ceiling on dollar deposit rates to 1.0 per cent from 1.25 per cent at present, the radio station said in its morning news bulletin.

The rate cuts would be made "this week", the report said, without giving a more specific date.

The central bank has already said that dong rates should be lowered this year. Lower interest rates could help Vietnam meet the government's economic growth target of 5.8 per cent, after growth of 5.4 per cent in 2013.