Interest rates likely to fall to 7 percent: State Bank Governor

Mobilization interest rates may fall to 7 percent in mid-2013, said governor of the State Bank of Vietnam (SBV), Nguyen Van Binh, at a meeting with businesses in Ho Chi Minh City on July 28.

In response to businesses’ requests to reduce loan interest rates to 10 percent per year, Binh said the current interest rates of 15 percent remain high.

If inflation is kept at 7 percent, mobilization rates for Vietnamese dong will fall to 8 percent by the end of 2012 and 7 percent in mid-2013, he said, adding that this will help cut loan interest rates to 10 percent.

In the current context of low inflation (2.22 percent) over the past seven months, many international organisations have predicted that Vietnam will continue cutting interest rates until the end of 2012.

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