The State Bank of Vietnam held its benchmark interest rate at 6.0 percent during its March meeting, but slashed its annual rediscount rate, overnight electronic interbank rate, and interest rate for loans by 1 percentage point each to increase liquidity and support economic growth. It was the first such move since October 2020, following a series of rates increases over the past year. Policymakers notes that it was part of the government's efforts to stabilize interest rates and to boost lending to businesses and individuals amid an uncertain global economic outlook. The central bank also said the inflation was under control, suggesting there might be more room for further rate cuts. The Southeast Asian country grew 8.02 percent in 2022, the fastest in decades, and expects to expand 6.5 percent this year.
