State bank governor suggests lower lending rates
State bank governor suggests lower lending rates
Lending rates may go down by another 1-2 per cent this year.
This was the message State Bank Governor Nguyen Van Binh delivered at a recent meeting with the Mekong Delta province of An Giang.
“Given favourable lending conditions, credit institutions may reduce lending rates by 1-2 per cent,” said Binh.
He added that with inflation forecasted at around 6 per cent in 2014, interest rates were likely to remain at the current level. But he said that if conditions became appropriate, banks could lower their rates, but by a maximum of 1-2 per cent.
Earlier last month, Nguyen Thi Hong, head of the Monetary Policy Department under the State Bank also said lending rates could go down given the right conditions in terms of the economy, the banking sector context and risk management.
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