Deposit and lending rates are showing signs of stabilizing and gradually decreasing, following a significant upward trend that had persisted from Q4 2024 to early 2025 Weak credit growth and the effort of the State Bank of Vietnam (SBV) to lower rates have contributed to reducing interest rates in both the primary (M1) and interbank (M2) markets. However, challenges remain, as the Government’s target of high credit growth this year will put considerable pressure on money demand and overall interest rates. Interest rates trend down in both markets Recently, deposit interest rates in the primary market (serving households and businesses) have fallen at many banks, following strong directives from the Government and the SBV. Meanwhile, lending rates have remained stable or slightly declined. In the interbank market, interest rates have also trended down and remained relatively stable as the SBV stopped withdrawing liquidity through treasury bill issues, and instead injected money into the system via open market operations (OMO) at an annual interest rate of 4% with longer terms, up to three months, compared to just one week previously. The Government and the SBV’s determined efforts to reduce interest rates to ensure the GDP growth target of 8% or higher […]
Deposit and lending rates are showing signs of stabilizing and gradually decreasing, following a significant upward trend that had persisted from Q4 2024 to early 2025 Weak credit growth and the effort of the State Bank of Vietnam (SBV) to lower rates have contributed to reducing interest rates in both the primary (M1) and interbank (M2) markets. However, challenges remain, as the Government’s target of high credit growth this year will put considerable pressure on money demand and overall interest rates. Interest rates trend down in both markets Recently, deposit interest rates in the primary market (serving households and businesses) have fallen at many banks, following strong directives from the Government and the SBV. Meanwhile, lending rates have remained stable or slightly declined. In the interbank market, interest rates have also trended down and remained relatively stable as the SBV stopped withdrawing liquidity through treasury bill issues, and instead injected money into the system via open market operations (OMO) at an annual interest rate of 4% with longer terms, up to three months, compared to just one week previously. The Government and the SBV’s determined efforts to reduce interest rates to ensure the GDP growth target of 8% or higher […]
Deposit and lending rates are showing signs of stabilizing and gradually decreasing, following a significant upward trend that had persisted from Q4 2024 to early 2025 Weak credit growth and the effort of the State Bank of Vietnam (SBV) to lower rates have contributed to reducing interest rates in both the primary (M1) and interbank (M2) markets. However, challenges remain, as the Government’s target of high credit growth this year will put considerable pressure on money demand and overall interest rates. Interest rates trend down in both markets Recently, deposit interest rates in the primary market (serving households and businesses) have fallen at many banks, following strong directives from the Government and the SBV. Meanwhile, lending rates have remained stable or slightly declined. In the interbank market, interest rates have also trended down and remained relatively stable as the SBV stopped withdrawing liquidity through treasury bill issues, and instead injected money into the system via open market operations (OMO) at an annual interest rate of 4% with longer terms, up to three months, compared to just one week previously. The Government and the SBV’s determined efforts to reduce interest rates to ensure the GDP growth target of 8% or higher […]
It is undeniable that Vietnam’s economic growth is increasingly reliant on monetary policy, while the effectiveness and ripple effects of fiscal policy have yet...
The overall balance of payments showed a more positive trend in the third quarter of 2024, with the deficit narrowing significantly. However, persistent challenges...
With U.S. dollar interest rates now getting lower, foreign exchange risks have eased, potentially redirecting foreign investor funds to emerging and developing economies, including...
The number of businesses resuming operations continues to grow strongly. What factors are driving this trend, and is this recovery truly sustainable?
Business confidence on...
Although deposit interest rates continue rising, predictions about the central bank’s policy rates have shifted significantly. What has led to these new expectations for...