BUSINESS IN BRIEF 17/2

State bank ponders rate cut The central bank plans to lower interest rates this year, but is unsure about the best time to do it. The Government recently issued a resolution requiring the central bank to lower interest rates at a proper time in order to meet society’s needs. The Governor of the State Bank of Viet Nam, Nguyen Van Binh, said bank deposit interest rates would likely drop to about 10 per cent per year if the Government achieves its set target of controlling the rate of inflation at 9 per cent or 9.5 per cent by year-end, while at the same time settling banks’ liquidity problems. Such a decrease is possible because since August the monthly consumer price index (CPI) has slowed to a rate of less than one per cent. Moreover, the central bank is bent on solving the liquidity of some credit institutions. A director of a State-run bank, who declined to be named, said that although the CPI had showed signs of lowering deposit interest rates to less than 10 per cent this year, as expected, it had proven to be difficult because the liquidity of many banks was uncertain. After Tet (Lunar New Year),…

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