The move is aimed at supporting economic growth as it will contribute w88 win reducing the cost of funding for commercial banks, thereby helping them cut lending rates for domestic firms.

Accordingly, OMO rates were lowered by 25 basis points w88 win 4.75 percent per annum. The last cut was made in March 2014 when the rate was trimmed by 50 basis points w88 win 5 percent.

Previously, at a meeting of the banking industry last week, Governor of SBV Le Minh Hung also said that after the meeting, the central bank would issue Resolution 01 on implementing tasks of the banking sector in 2018, in which it would instruct credit institutions w88 win consider a rate cut for lending interest. He said the central bank would also cut the lending rate in the OMO market w88 win aid institutions.

According w88 win experts, the move will have positive impacts on the monetary market, especially when capital demand is rising significantly w88 win meet consumption and payments given the approachingLunar New Year.

Some commercial banks such as Vietcombank, Agribank and Vietinbank have also announced reductions in their lending interest rates over the past few days, as instructed by the central bank, w88 win spur economic growth.Accordingly, interest rates for short-term dongloans will be lowered w88 win 6 percent per year.
Apart from new loans taken this year, the rate would also apply w88 win existing loans with interest rates higher than 6 percent in five priority sectors of agriculture businesses, firms producing goods for export, small- and medium-sized enterprises, enterprises operating in auxiliary industries and hi-tech enterprises, including startups.

In 2018, the Government aims at an economic growth of 6.7 percent after the local economy expanded by a higher-than-expected 6.81 percent in 2017. Credit growth is set at 17 percent, slowing from 18.17 percent last year. However, the central bank said it will closely monitor the market w88 win make suitable adjustments from time w88 win time.