Interest rates have been gradually rising. In the context of the State Bank of Vietnam (SBV) continuously injecting liquidity through open market operations to fully meet the system’s short-term capital needs, the increase in interest rates generally reflects the reality of strong money demand in the economy. Rising money demand may signal expanding business activity. In this context, higher interest rates can be considered normal. Interest rates are inching up—without signs of overheating To achieve the economic growth target of at least 8% in 2025, the Government instructed the SBV early in the year to accelerate credit growth with a full-year target of 16%. Alongside monetary policy, fiscal policy has also been expansionary as the Government has continuously pushed for faster disbursement of public investment. By the end of the first nine months of this year, credit had already risen 13.37% compared with the end of 2024—its fastest pace in roughly 15 years. Money demand surged under the combined influence of both fiscal and monetary expansion, aided by a low interest-rate environment in the first half of the year. Credit growth in the first nine months outpaced deposit mobilization (which increased only about 10%), creating upward pressure on interest rates […]