The Bank of the Lao PDR’s Monetary Policy Committee approved a reduction in the kip-denominated base interest rate for maturities of up to seven days from 8% to 7% annually. It also extended foreign exchange market operating hours from 9 a.m.-3 p.m. to 9 a.m.-4 p.m. The committee based the rate cut on inflation remaining close to target and the exchange rate and M2 money supply moving within prescribed ranges. It nevertheless identified continued risks from weaker global growth, volatile gold and oil prices, geopolitical uncertainty, high foreign currency demand for external debt payments and the domestic use of multiple currencies. The central bank will continue its managed market-based exchange rate policy and tighten foreign exchange management, including by channeling more foreign currency receipts through the banking system and completing a foreign exchange flow management system. It will also continue consolidating government deposit accounts under the Treasury Single Account and developing the payment system.
2026-08-20Bank of the Lao
Bank of the Lao PDR cuts seven-day kip base rate to 7% and extends foreign exchange market hours
The Bank of the Lao PDR cut its kip base rate for maturities of up to seven days from 8% to 7% annually. It also extended foreign exchange market hours to 4 p.m. while retaining tighter management of foreign currency flows.