Vietnam lifts loan rate caps to dampen inflation
The State Bank of Vietnam on Wednesday moved to deregulate interest rates on short-term commercial loans, in its continuing efforts to keep a tight leash on credit expansion.
The central bank lifted the cap keeping interest rates on short-term loans at a maximum of one and a half times the central bank's rate, which stands at 8%. It is expected that the decision will see the cost of short-term borrowing increase from 12% to between 14% and 16%.
The decision follows a similar move to free rates
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