Vietnam: Central bank to cut policy rates effective 13 May 20

• The State Bank of Vietnam announced a reduction in its policy rates, making a second cut in less than two months to help the economy weather the impact of the coronavirus pandemic.
• With just 288 infections and no deaths, the Southeast Asian nation has seen no community infections for nearly a month, putting it on course to resume economic activity sooner than most others in the region.
• The refinancing rate will be cut to 4.5% from 5% and the discount rate to 3% from 3.5%, effective 13 May 20, the central bank said in a statement.
• The central bank said it would also lower the caps on the interest rates of VND-denominated deposits from 13 May 20, cutting returns on deposits by 0.3-0.5 percentage points, depending on the maturities.
• Prime Minister Nguyen Xuan Phuc said last week Vietnam will try to keep its economic growth above 5% in 2020, backed by public investment, foreign direct investment, exports and domestic consumption.

External Link : https://asia.nikkei.com/Economy/Vietnam-central-bank-to-cut-policy-rates-Wednesday-to-boost-growth