STATE BANK OF VIETNAM CUTS RATES BY ANOTHER 1%

HANOI - The State Bank of Vietnam (SBV) has cut its policy rate by another 100 basis points to 8%. This follows a cumulative 600 basis points of cuts in 2012 - the most recent cut was 100 basis points in late December. The SBV also reduced the cap on dong deposit rates by 50 basis points, to 7.50% from 8%, with the hope of incentivising banks to reduce their lending rates. ANZ Bank says it believes this will be the last cut for the year - but says there are risks of another cut if economic data deteriorates further.