Vietnam Forecast to Cut Further Benchmark Interest Rate in Q1-HSBC, SSI

Viet Nam is forecast to cut benchmark interest rate further to 7%-7.5% from current 8.5% in the first quarter as part of efforts to boost production and consumption to combat economic slowdown, HSBC and Saigon Securities Inc said.

In a report on Vietnam’s outlook in Q1, HSBC said Viet Nam will continue loosening the monetary policies and cut the base rate to 7.5% right in the first quarter this year, the Lao Dong newspaper said.

Meanwhile, Vietnam’s leading Saigon Securities Inc predicted that Viet Nam will cut strongly the prime rate to 7% right in January and devalue the dong to support exporters which face numerous difficulties, the newspaper noted.

HSBC also predicted that Vietnam’s economy will grow 5.4% during the time behind China with GDP growth of 7.8% and India with GDP growth of 5.9%.

Vietnam’s second biggest state-owned bank by assets-BIDV-has cut lending rate of dong loans to 6.5% effective from today January 9, signaling the cut by the State Bank of Viet Nam, the central bank, traders said. (Lao Dong)