BOL Cuts 7-Day Base Interest Rate Again to Support Economic Growth

26/11/2025 11:27
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KPL The Bank of the Lao PDR (BOL) has announced another reduction of its 7-day base interest rate as part of continued efforts to maintain liquidity in the financial system and support economic growth.


According to the decision issued at the Monetary Policy Committee’s (MPC) fourth meeting of 2025, chaired by BOL Governor Bounkham Vorachit, the central bank will lower the 7-day base rate from 9 percent to 8.5 percent per annum. The announcement was made on 20 November.

This marks the fourth interest rate cut in 2025. The BOL previously reduced the rate from 10.5 percent to 10 percent in March, then to 9.5 percent in June, and again to 9 percent in August, reflecting the central bank’s ongoing efforts to ease monetary conditions amid economic challenges.

Looking ahead to 2026, the BOL said it will continue implementing a mixed monetary policy framework. This includes issuing short-term bonds when needed and managing the exchange rate to help stabilize the kip, which has faced persistent depreciation pressures in recent years.

The central bank emphasized that these measures are part of broader efforts to support macroeconomic stability and create more favorable financial conditions for businesses and consumers.

KPL

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