Vietnam has reason to lower deposit rate cap on easing inflation

Vietnam has good reason to mull over lowering deposit interest rate cap to 13% from the current level of 14% on slowing down CPI.

Vietnam has good reason to mull over lowering deposit interest rate cap to 13% from the current level of 14% on slowing down CPI, Tran Hoang Ngan, member of the Monetary Policy Advisory Council, told the local state-run online newspaper Tuoi Tre (“Youth”) on Oct 24.

The country’ October CPI was up 0.36% on-month, a third monthly decline in a row, falling from its 0.82% rise in September and 0.93% in August.

This is a sound reason to consider cutting rate cap, Ngan said, adding that the cap can be cut to as low as 12% if CPI continues to ease.

However, Ngan stressed that it is still too early to think of removing deposit interest rate cap as of now as the government has been struggling to pull down interest rates and restructuring the banking system was still in its very early stage.

Source Sophie/ News Writer/ StoxPlus

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial, Vietnam interest rates

Posted by VBN on Oct 24 2011. Filed under Banking-Finance, Economy News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry