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Laos tightens monetary policy to ease inflation

Invest Global 12:00 30/08/2024

The Bank of the Lao PDR is set to further increase interest rate on Lao kip deposits from 10 per cent to 10.5 pc per year to alleviate inflationary pressures currently affecting the economy, reported the Vientiane Times.

The Bank of the Lao PDR is set to further increase interest rate on Lao kip deposits from 10 per cent to 10.5 pc per year to alleviate inflationary pressures currently affecting the economy, reported the Vientiane Times.

Laos tightens monetary policy to ease inflation Laos tightens monetary policy to ease inflation, Illustrative image (Photo:laotiantimes.com)

Hanoi – The Bank of the Lao PDR is set to further increase interest rate on Lao kip deposits from 10 per cent to 10.5 per cent per year to alleviate inflationary pressures currently affecting the economy, reported the Vientiane Times.

The interest rate on foreign currency deposits will also rise from 10 per cent to 11 per cent.

The central bank recently approved a resolution to raise the basic interest rate for kip on a 7-day term, from 8.5 per cent to 10 per cent per annum.

It will continue following the policy of maintaining a centralised foreign exchange market under state management, while also managing foreign currency and developing a payment system that connects domestic and international banks to promote the use of kip.

Inflation in Laos continued to rise in July 2024, reaching 26.1 per cent month-on-month, amid a weakening kip and rising global fuel prices.

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By VNA