The State Bank of Vietnam (SBV) said it will maintain its interest rate cap between now and June this year.
Talking with the press on Jan. 11, SBV Governor Nguyen Van Binh said in the first quarter of the year, the central bank will supply money to credit institutions to increase their liquidity and facilitate business production activities.
The cap on interest rate, which now stands at 14 percent a year, is expected to be lifted when the SBV can better manage credit institutions’ liquidity, he said.
According to the SBV leader, the banking sector posted a credit growth of 13 percent in 2011, representing almost one-third of the previous years’ figures.
Tightening credit growth will help reduce machinery and equipment imports and trade deficit, he said.
The central bank will continue supporting Vietnamese dong and stabilising foreign currencies to ensure that exchange rate fluctuates at 2-3 percent.
Source: Vietnam News Agency
