Vietnam's central bank asked to keep interest rates low and easier access for business

Image from Vietnam News/ANN

HANOI (Bernama-Xinhua): The State Bank of Vietnam has been tasked to keep interest rates low and financial access easier for businesses, according to local media reports, citing the recent order made by Prime Minister Pham Minh Chinh.

The prime minister asked the central bank to conduct reviews on the results of credit issuance by financial institutions across the country, including commercial banks and credit institutions, to stabilise interest rates and stimulate credit growth in 2024.

The sector's top priorities in 2024 have been identified as reducing interest rates for loans, coupled with enhancing access to credit to support the development of production and business, as well as ensuring sufficient and healthy credit and foreign exchange, local newspaper Vietnam News reported.

In 2023, Vietnam's central bank cut policy interest rates four times by 0.5 to 2 percentage points, resulting in reductions of around 2 percentage points in deposit and lending rates compared to the end of 2022.

As of the end of 2023, lending rates for prioritised sectors were reduced to below 4 per cent per year, while the average deposit rate was 3.5 per cent per year. - Bernama-Xinhua