Controlling and curbing interest rates to more manageable levels represent the most effective remedy for the current economic landscape. The timing of this intervention is particularly strategic, following a series of fiscal measures previously implemented by the Government to serve as a buffer against energy price volatility and to restore market stability. Right diagnosis On Thursday, April 9, the newly appointed governor of the State Bank of Vietnam (SBV), Pham Duc An, convened a meeting with 46 commercial banks to implement monetary policy measures. As a result, all participating institutions pledged to lower both deposit and lending rates to support economic activity. Between Friday and Monday, many banks reduced interest rates by 0.5 to one percentage point, depending on tenor. This marks the governor’s first initiative—not merely to halt rising rates, but to actively cut them—despite the prevailing trend of interest rate hikes. Some observers have expressed concern that Vietnam’s move runs counter to the global trend, where many central banks are expected to tighten monetary policy in the coming months. In mid-March, the Reserve Bank of Australia (RBA) raised its policy rate by 0.25 percentage point to 4.1%. Meanwhile, forecasts for the U.S. Federal Reserve (Fed) have shifted: instead […]
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