Vietnam's central bank on Friday said it will cut interest rates to the lowest since late 2009, to underpin economic growth.
The State Bank of Vietnam will lower the refinancing rate to 7 percent from 8 percent, with effect from May 13. The bank has cut the rate eight times since March 2012. The discount rate will be reduced to 5 percent from 6 percent.
In 2012, the economy expanded 5.03 percent, the weakest pace in 13 years. Gross domestic product increased only 4.89 percent on an annual basis in the first quarter of 2013.
The credit problems in the corporate sector has prompted the government to launch a slew of measures to support the business sector and help the economy to emerge from the slowdown.
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