The refinance rate was cut to 4.5%, the discount rate to 3.0% and the electronic interbank rate to 5.0%, the State Bank of Vietnam (SBV) said in a statement. The change is effective from Monday.

The headquarters of State Bank of Vietnam in Hanoi.

The move is a bid to shore up Vietnam’s manufacturing-led economy at a time of weak global demand and slower credit growth. Earlier on Friday, the government urged the central bank to "immediately take practical measures to lower interest rates level, with a round of policy rate cuts this month."

Vietnam’s economic growth slipped to 3.3% in the first quarter from 5.9% in the fourth quarter due to weak demand in key export markets, while manufacturers have been dealing with both falling orders and electricity cuts due to power shortages.

The regional manufacturing hub reported a12.3% decline in exports in the first five months of this year, dragged by shrinking shipments of key products smartphones, electronics and garments.

Almost all banks cut 6-month deposit interest rate to below 8%/year

Almost all banks in Vietnam have cut interest rates for deposits for terms from six months and above to below 8% per year.

Certain banks allowing loans above limit

Some banks have allowed loans as much as six times higher than the set limit, according to a report by the State Audit of Vietnam.

Banks to lower loan interest rates by 50 basis points

Banks are set to cut loan interest rates on Monday on the directions of the central bank, which is seeking to speed up economic recovery.

Ha Long Bay, Hoi An among top travel destinations depicted on banknotes

Hong Kong newspaper South China Morning Post has named Vietnam's Ha Long Bay and Hoi An town among the world's best tourist destinations appearing on banknotes.

Reducing loan interest rates an important policy to support businesses: central bank deputy governor

The State Bank of Vietnam (SBV) has been drastically implementing measures, particularly those to reduce loan interest rates, said its deputy governor Dao Minh Tu at a regular government press conference on May 5, calling it one of the important and practical policies to help businesses.

Source: VnExpress