Vietnam’s inflation seen at 19pct

After the State Bank of Vietnam (SBV) worked with 12 commercial banks on lowering the lending interest rate, Louis Taylor, general director of Standard Chatered Bank (Vietnam) Limited, said that key interest rates of the central bank may fall, creating favorable condition for lowering the lending interest rate.
In addition, if banks ensure the deposit interest rate at 14% per year, the lending interest rate will have base to fall to 17-19% per year, Taylor said.

Taylor also added that presently, many enterprises are borrowing capital at Standard Chatered Vietnam with the interest rate of 17-19% per year, however this preferential interest rate is not for all customers but it depends on the credit quality of borrowers.

Additionally, he said that if interest rate is reduced gradually and inflation shows clear downtrend from now till the end of this year, the forex rate will not be affected much.

Basing on the government’s overall policies to gain approved targets, Standard Chatered’s economist forecasted Vietnam’s 2011 average inflation would hover about 19% and the forex rate would be at 20,600 dong/US dollar. – Vietbiz24

Tags: Vietnam 2011 inflation, Vietnam economic, Vietnam economy, Vietnam inflation

Posted by VBN on Aug 30 2011. Filed under 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