VCSC Daily - Stocks rally, break resistances
Circular 14 to apply a ceiling lending rate. The SBV has just issued Circular 14 effective 8 May 2012 that will apply ceiling lending rate caps for short-term lending to select sectors including agriculture, export and supporting industries and SMEs. The lending rate cap will be calculated by adding 3% to the deposit rate. The lending rate cap would then be 15% with current deposit rates at 12%. Although, our view is that another deposit rate cut is possible if May inflation eases further.