Laos lowers base interest rate to support monetary stability

VIENTIANE, Aug. 22 (Xinhua) -- The Bank of the Lao PDR (BOL), the Lao central bank, reduced its 7-day base interest rate from 8 percent to 7 percent to help maintain monetary stability, according to a BOL report on Saturday.

The central bank made the decision while convening its third Monetary Policy Committee meeting of 2026 on Thursday.

The committee said at the meeting that Laos continues to face economic risks from both domestic and international factors, including weak economic fundamentals, high demand for foreign currency to service external debt and the continued use of multiple currencies for domestic payments, as well as an expected slowdown in global growth, volatility in international gold and oil prices, and political uncertainty in the Middle East, the report said.

To support monetary stability, the committee also agreed to continue implementing coordinated monetary and exchange-rate policies based on market mechanisms under state management, it said.

The BOL will also continue coordinating with relevant agencies to adjust economic policies and measures as needed, it added. Enditem