Vietnam central bank to cut interest rates further

HANOI, March 30 (Reuters) – Vietnam’s central bank intends to cut its policy rates further to support economic growth, deputy governor of the State Bank of Vietnam, Dao Minh Tu, said on Thursday.

“The central bank’s message is to cut its rates…there will be another round of rate cuts,” Tu was quoted by the Tuoi Tre newspaper as saying, without giving further details.

The Southeast Asian country’s economic growth slowed to 3.32% in the first quarter, against a 5.92% expansion in the fourth quarter of 2022, as weak global demand slashed exports.

Earlier this month, the central bank cut several policy rates to increase liquidity and support growth, in a surprise move that set it apart from regional peers amid the global financial turmoil.

Tu said future rate cuts would allow local commercial banks to cut their lending rates, according to the report.

“We have abundant liquidity and we encourage lending,” Tu was quoted as saying.

(Reporting by Khanh Vu Editing by Ed Davies)