Vietnam cuts key rate for second time in weeks to aid economy

HANOI, April 4 (Bloomberg): Vietnam’s central bank announced it will cut a key policy interest rate for the second time this year as it seeks to bolster an economy that grew slower than expected amid drops in exports and slowing domestic demand.

The State Bank of Vietnam will reduce its refinancing rate to 5.5% from 6%, effective April 3, the regulator announced on its website Friday night. A reduction in the refinancing rate will help banks get cheaper loans from the central bank, which in turn can lower their lending interest rates to businesses.