Analysts predict that Vietnam’s central bank will extend its interest rate cuts for the rest of 2023 There are emerging concerns regarding the FX rate and inflation that could impede the bank’s rate-cutting initiatives. Swift reductions in interest rates might widen the disparity between local and global interest rates, especially those denominated in USD. The World Bank has also signaled limited flexibility for Vietnam to further relax its monetary policy. Despite the decrease in interest rates, credit demand remains subdued.