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Vietnam central bank says no imminent plan to cut policy rates

Vietnam central bank says no imminent plan to cut policy rates

FILE PHOTO: The State Bank of Vietnam building is seen in Hanoi, Vietnam September 8, 2017. REUTERS/Kham

HANOI: Vietnam's central bank said on Tuesday (Aug 10) it has no imminent plan to cut its policy rates to shore up the economy as the country battles its biggest COVID-19 outbreak yet.

Local commercial banks' liquidity is abundant and interbank interest rates are quite low while the economy's capital demand is not high, the deputy governor of the State Bank of Vietnam said.

"Reducing policy rates or adjusting other monetary tools are not appropriate measures at the moment," Dao Minh Tu said in a statement.

Vietnam is dealing with its worst coronavirus outbreak so far, which has forced about a third of its cities and provinces to impose restrictions on movement and suspension of some business operations.

It has recorded more than 225,000 cases and 3,757 deaths overall, with the vast majority of those in recent months, which followed a year of successful containment.

Tu said the central bank was closely monitoring the economic situation and will "timely adjust its policy rates when needed, adding that it cut the rates three times last year.

Source: Reuters/dv

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