Vietnam Signals Rate Pause as Banking Revamp Approaches

Vietnam will find it “difficult” to cut interest rates further this year, central bank Deputy Governor Nguyen Dong Tien said, as the nation moves to create an asset company that would clean up bad debt and revive growth.

“The pressure on inflation still remains and there are still some factors that will cause inflation to quicken toward the end of the year,” Tien said in an interview in Hanoi yesterday. “A further rate cut by the central bank is difficult. There’s a small chance.”