Lending Rates Set To Climb Despite SBV Intervention

March 2011
Asia Monitor: South East Asia Monitor Volume 1;Mar2011, Vol. 22 Issue 3, p5
Country Report
The article reports on the decision of the State Bank of Vietnam (SBV) to impose a 14.0% ceiling on local currency deposit rates on December 15, 2010 in an effort to cease the rise in interest rates in the country. Business Monitor International Ltd. (BMI) considers that the failure of the central bank to fix inflation expectations will continue to put upward pressure on interest rates. It indicates that SBV needs to take a stronger stance on enforcing the interest rate cap on commercial banks.


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