More than 12 banks have cut deposit interest rates in response to the Prime Minister’s direction to lower rates to help achieve the Government’s 8% growth target in 2025, according to State Bank of Vietnam (SBV) Deputy Governor Dao Minh Tu.

Some of the banks have reduced the rate by up to 0.7 percentage point, he said at the regular Government meeting held in Hanoi on February 5.

Earlier, on February 24, Prime Minister Pham Minh Chinh signed a Dispatch, requiring the SBV to enhance measures to reduce interest rates.

Mr. Tu said the central bank will continue tighten supervision over interest rate to ensure the proactiveness of commercial banks and support businesses.

Last year, the average loan interest rate dropped 1.1% compared to the end of 2023.

The SBV has recently asked credit institutions to strictly observe directions of the Government, the Prime Minister and the central bank to take measures to stabilize the deposit interest rate, contributing to stabilizing the financial market, he said.