The upward trend in deposit interest rates has become a significant concern, not only posing risks to macroeconomic stability but also constraining the central bank’s monetary easing aimed at supporting credit growth Interest rate rise feared to hinder monetary easing As of November 27, total outstanding loans in the economy had reached VND18.2 quadrillion, representing a sharp 16.56% increase compared with the end of 2024, according to a recent statement from the State Bank of Vietnam (SBV). This pace is significantly higher than the 11.47% rise recorded over the same period in 2023 and also exceeds the full-year growth of 15.09% in 2024. Historically, credit growth has tended to concentrate in the fourth quarter, particularly in December, with monthly gains of 3–4%. On this basis, credit growth in 2025 is projected to approach 20%—the highest level in the past 15 years—pushing total outstanding loans beyond VND18.8 quadrillion. With the Government targeting GDP growth of over 8% this year, the central bank is expected to intensify monetary easing to further stimulate credit expansion. Minister of Finance Nguyen Van Thang recently noted that storms and floods had shaved approximately 0.1% off fourth-quarter GDP, underscoring the need for stronger policy support. At the […]