HANOI Dec 22 Vietnam's central bank will cut
its discount rate by one percentage point to 7 percent and lower
the refinance rate to 9 percent from 10 percent to boost the
country's economic growth, it said in a statement.
It will also lower the ceiling on dong lending rates for
agriculture, export and supporting industries to 12 percent from
13 percent and cut the dong deposit ceiling rate for terms
ranging from one month to below 12 months to 8 percent from 9
percent, the State Bank of Vietnam said in the statement issued
late on Friday.
The new rates, the sixth revision this year, will come into
effect on Dec. 24.
"Production and business still face many difficulties due to
the market's low purchasing power, high stockpiles and limited
fund absorbing ability of businesses," the central bank said in
Vietnam's economic growth will slow slightly to 5.1 percent
this year, a government report said this month, slightly lower
than an earlier estimate of 5.2 percent expansion. Gross
domestic product increased 5.89 percent in 2011.
The central bank said annual inflation for this year would
be 7 percent, in line with earlier government estimates.
(Reporting by Hanoi Newsroom; Editing by Sanjeev Miglani)