State Bank of Vietnam to Provide Liquidity to Support Lower Interest Rates
The State Bank of Vietnam says it will actively manage market liquidity and provide funds to support lower interest rates. It has asked lenders to cut rates on new longer-term deposits and loans for production and business; rates on newly issued loans fell in late October compared with mid-October.
State Bank of Vietnam Deputy Governor Phạm Thanh Hà said the central bank will actively manage liquidity and provide funds to the market to support lower interest rates in the period ahead. In the final two months of 2026, it will continue to steer credit toward production, business and priority sectors, and urge financial institutions to lower deposit and lending rates.
State Bank of Vietnam Deputy Governor Phạm Thanh Hà said the bank will ensure credit flows to production and business.（VietVance）
The State Bank of Vietnam previously asked commercial banks and other credit institutions to cut rates on new deposits with terms of six months or longer by 0.5 to 1 percentage point, creating conditions for an overall decline in interest rates. It also asked them to cut lending rates for production, business and priority sectors by 1.5 to 2 percentage points. Phạm Thanh Hà said banks have generally reduced their posted annual rates on the new deposits in question by 0.5 percentage points. State-owned commercial banks and foreign banks cut rates by an average of about 0.5 percentage points, while joint-stock commercial banks cut them by 0.5 to 0.7 percentage points.
Actual interest rates have also fallen. In late October, the average rate on new deposits was about 0.4 percentage points lower than in mid-October, while rates on newly issued loans fell by 0.2 to 0.5 percentage points. More than 20 banks announced preferential credit programs for production, business and priority sectors, with annual rates reduced by 1.5 to 2 percentage points.
To meet financial institutions’ funding needs, the State Bank of Vietnam has conducted daily open market operations, provided refinancing and carried out short-term swaps of foreign currency for Vietnamese dong. It has also introduced six-month foreign currency-to-dong swaps for credit institutions. The central bank said it will adjust the exchange rate flexibly in line with market supply and demand and macroeconomic trends, and take action against credit institutions that fail to strictly implement the instructions to lower interest rates.
The State Bank of Vietnam will provide liquidity to the market.（VietVance）
Source: VietVance
