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Vietnam Further Cuts Rates to Shield the Virus-Hit Economy

People stand in line to collect rice from "Rice ATM" machines at a rice distribution center in Ho Chi Minh City, Vietnam, in April.

People stand in line to collect rice from "Rice ATM" machines at a rice distribution center in Ho Chi Minh City, Vietnam, in April.

Photographer: Maika Elan/Bloomberg
Updated on

Vietnam’s central bank, looking to help businesses struggling to recover from the economic blow of the coronavirus outbreak, has cut policy interest rates effective May 13 for the second time in two months.

The refinancing rate will be reduced to 4.5% from 5% while the discount rate trimmed to 3% from 3.5%, the State Bank of Vietnam said in a statement on its website. The dong deposit rate cap for terms between one month to less than six months will be reduced to 4.25% from 4.75%.