Hanoi (VNA) - The Bank of the Laos (BOL) will reduce its 7-day basic interest rate from 8.5% to 8% in a move aimed at maintaining monetary stability in Laos.
The measure was approved at the first Monetary Policy Committee meeting of 2026, which reviewed and assessed the performance of monetary policy instruments and discussed future policy directions, according to a BOL report on February 23.
The meeting, held in the Lao capital of Vientiane, highlighted continued uncertainty in the global environment, which has contributed to volatility in fuel, energy, gold and food prices and is expected to slow global economic growth.
Domestically, the committee noted persistent challenges, including a fragile economic base, strong demand for foreign currency to service external debt, exchange rate fluctuations, and credit growth that remains misaligned with structural economic objectives. However, coordinated policy measures are expected to help keep inflation at around 5%.
To safeguard monetary stability, the committee endorsed key policy directions for 2026. These include maintaining a managed float exchange rate regime and refining monetary tools such as interest rates, reserve requirements, and the issuance of short-term BOL bonds, along with close monitoring of exchange rate movements to mitigate inflation risks./.
Lao Airlines to resume direct Vientiane – Da Nang service
The carrier said it will operate two flights per week on Thursdays and Sundays, using the Comac C909 aircraft configured with 90 economy-class seat.
