The State Bank of Vietnam (SBV) has instructed credit institutions to mobilise resources, reduce operating costs and share profits with customers by lowering interest rates to support economic growth, Deputy Governor Pham Thanh Ha said at the Government’s regular press conference, held in Hanoi on November 4.
The central bank has asked lenders to reduce annual deposit interest rates by 0.5–1 percentage point on new deposits with terms of six months or longer, creating room for further cuts in lending rates.
It has also called for lending rates on loans serving production, business activities and priority sectors to be reduced by 1.5–2 percentage points.
Banks have now broadly implemented cuts to their listed deposit rates for new deposits with maturities of at least six months.
More than 20 banks have aannounced preferential credit programs for businesses and priority sectors, offering annual interest rate reductions of 0.5–2 percentage points.
Outlining the monetary policy direction for the final two months of the year, Mr. Ha said the SBV would continue to closely monitor domestic and international macroeconomic developments and manage monetary policy proactively and flexibly.
The central bank aims to help control inflation, maintain macroeconomic stability and support sustainable economic growth.
A key priority will be to manage market liquidity proactively and ensure adequate capital supply, creating favourable conditions for further reductions in both deposit and lending interest rates.
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