Early this year, the credit growth target was set at 16% to boost economic growth. It is significantly higher than in previous years. Now, the focus has shifted to policy rates, which might be cut. The intention of policymakers and market signals On March 9, 2025, the Prime Minister issued Directive No. 22/CD-TTg outlining key tasks and solutions to cut administrative procedures, improve the business environment, and promote socio-economic development. One of the key tasks is to aggressively continue implementing credit policy aimed at reducing lending rates; encouraging foreign banks to participate in settling bad debt, restructuring weak banks, and increasing investment in Vietnam. At the Government’s regular meeting on March 5, 2025, the Prime Minister requested the State Bank of Vietnam (SBV) to consider lowering policy rates through tools such as the rediscount rate, refinancing rate, open market operations; overnight lending rates, lending rates for priority sectors directed by the Government, and SBV bill rates. With the goal of further boosting economic growth, monetary policy is being viewed as a key lever, with a direction towards stronger easing. Right from the start of the year, the credit growth target was set at 16%, much higher than in previous years. […]