XINHUA – The Lao central bank, the Bank of the Lao PDR (BOL), is set to further increase interest rates to alleviate inflationary pressures currently affecting the economy.
The bank’s Monetary Policy Committee has decided to raise the interest rate on Lao currency kip from 10 per cent to 10.5 per cent per year. The interest rate on foreign currency deposits will also be increased, rising from 10 per cent to 11 per cent per year, according to a report issued by the BOL yesterday.
The latest adjustment follows a previous decision by the BOL, announced on June 12, to raise the interest rate on kip from 8.5 per cent to 10 per cent per year, reflecting the bank’s commitment to addressing the ongoing economic challenges.
The BOL is also advancing efforts to improve foreign currency management and develop a payment system that connects domestic and cross-border banks to promote the use of the Lao currency kip.
