The State Bank of Vietnam has cut key interest rates by 1 percent, applicable since May 13.

Under the decision, the refinancing and discount rates will be lowered to 7 percent and 5 percent, respectively.

Meanwhile, the overnight rate in the inter-banking electronic payment will be reduced to 8 percent from the current 9 percent.

The maximum rate on short-term Vietnamese dong loans for agriculture, rural development, exports, supporting industries, small- and medium-sized enterprises and hi-tech businesses will be brought down to 11 percent per year instead of the current 12 percent.

Earlier on March 25, the central bank also cuts benchmark rates by 1 percent to support businesses. Accordingly, the refinancing and rediscount rates were lowered to 8 percent and 6 percent from 9 percent and 7 percent, respectively. Meanwhile, the overnight inter-bank rate was cut down to 9 percent.

The move was made after the General Statistics Office had reported that March’s consumer price index decreased by 0.19 percent against the previous month.-VNA