Vietnam Central Bank Likely To Cut Rates N/T - HSBC

Vietnam's central bank is likely to cut policy rates over the next two weeks after government figures Thursday showed that consumer price inflation in May eased to single digits, says HSBC Global Research. The General Statistics Office says Thursday that CPI in the month rose 8.34% from a year earlier, the slowest pace since August 2010. The central bank already cut rates in late 1Q and early 2Q by a cumulative 2%. "While we have expected more cuts to come soon, the sharper-than-expected decline in inflation is likely to accelerate the timing of the cuts," the house says. It notes that with oil prices decreasing and domestic demand low, the risk to inflation tilts to the downside.

Vietnam Central Bank Likely To Cut Rates N/T - HSBC

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