Vietnam cuts key rates to boost growth

 
A man buys chicken parts at a market in Hanoi. Vietnam will cut its discount rate by one percentage point to 7 per cent and lower the refinance rate to 9 per cent from 10 per cent to boost economic growth. -- PHOTO: REUTERS

HANO (REUTERS) - Vietnam's central bank will cut its discount rate by one percentage point to 7 per cent and lower the refinance rate to 9 per cent from 10 per cent to boost the country's economic growth, it said in a statement.

It will also lower the ceiling on dong lending rates for agriculture, export and supporting industries to 12 per cent from 13 per cent and cut the dong deposit ceiling rate for terms ranging from one month to below 12 months to 8 per cent from 9 per cent, the State Bank of Vietnam said in the statement issued late on Friday.

The new rates, the sixth revision this year, will come into effect on Dec 24.

"Production and business still face many difficulties due to the market's low purchasing power, high stockpiles and limited fund absorbing ability of businesses," the central bank said.

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