Macro/ Strategy

SBV cut policy rates for the 4th time, effective from June 19, 2023, in order to encourage the commercial banks to reduce deposit rate, thereby lowering lending rate to support economic growth. In addition, the government has been accelerating the implementation of tax support policies, speeding up disbursement of public investment and credit support packages of VND 40 trillion and VND 120 trillion in the context of stagnant manufacturing and weak export.

However, core inflation still high, risk of food price increase affected by El Nino and possibility of continuing interest rate hike by central banks are headwinds for the striving of Vietnam to lower the interest rate.