Hanoi (VNA) - The State Bank of Vietnam (SBV) announcedit would reduce several policy interest rates from April 3, the second cut within onemonth, the regulator announced on its website March 31 night.

"In order to extricate the obstacles for the economy, businesses andcitizens, the SBV decided a further cut on the policy rate," it said in awebsite statement.

Refinancing rate will be revised down to 5.5% from 6%, while the discount ratewill remain unchanged at 3.5%.

The overnight electronic interbank rate will remain at 6.0%.

Caps on interest rates of dong-denominateddeposits for terms between one month and less than six months will be loweredto 5.5% from 6% while the cap on the lending interest rates for short-termloans in some sectors will be reduced to 4.5% from 5%, it said.

The central bank said it decided to cut the rates “amid continued globaleconomic uncertainties that led to the nation’s slowing economic growth in thefirst quarter while inflation is under control and banks have a surplus ofliquidity,” according to the website statement.

The decision reflected an uncertain global outlook, with inflation in severalcountries high and Q1's economic growth lower than those of the same quartersin previous years, the SBV said, adding that domestic inflation was undercontrol.

Vietnam’s economy reduced its speed to 3.32% growth in the first quarter from a5.92% expansion in the fourth quarter of 2022.

Earlier this month, the SBV also cut several policy rates, its first policyeasing since late 2020 after a series of interest rate increases./.