As per Dao Minh Tu, deputy governor of the State Bank of Vietnam, the country's central bank plans to further lower its policy rates to encourage economic expansion.
"The central bank's message is to cut its rates...there will be another round of rate cuts," Tu was quoted by the Tuoi Tre newspaper as saying, without giving further details.
Economic growth in the Southeast Asian nation decreased to 3.32 percent in the first quarter from a 5.92 percent increase in the fourth quarter of 2022 as a result of sluggish global demand.
In an unexpected action that distinguished it from regional counterparts despite the upheaval in the global financial system, the central bank reduced numerous policy rates earlier this month to boost liquidity and support growth.
According to sources, Tu claimed that upcoming rate reductions will enable regional commercial banks to lower their lending rates.
"We have abundant liquidity and we encourage lending," Tu was quoted as saying.
The State Bank of Vietnam, the country's central bank, is a ministry-level organisation run by the government, and its governor is a member of the cabinet (equivalent to a minister in the cabinet). The National Assembly must approve the governor's nomination by the prime minister (Parliament). Vice governors are chosen by the prime minister based on the governor's recommendations. The terms of the governor and vice governor are both five years.