The regulator has requested the banking system to implement solutions to stabilize interest rates, aiming to boost economic growth in 2025, following the prime minister's directive.
Banks have been tasked with stabilizing and striving to reduce deposit interest rates, thereby contributing to stabilizing the monetary market and creating room to reduce lending rates. At the same time, credit institutions need to continue cutting operating costs, increasing the application of technology, digital transformation, and simplifying loan procedures.
The state bank also reminded banks to continue publishing average lending rates, the difference between average deposit and lending rates, lending rates for credit programs, credit packages, and other lending rates on their websites, making it easier for customers to access and look up information.
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State bank headquarters in 10/2024. Photo: Hoang Giang |
State bank headquarters in 10/2024. Photo: Hoang Giang
After its latest meeting, the US Federal Reserve (Fed) has not given a firm forecast for the direction of interest rate management in its September meeting this year. With this new development, the USD Index is returning to its 3-month high.
According to UOB's forecast, USD interest rates are likely to remain high, averaging above 4% for the rest of 2025. However, UOB maintains its view that the Fed will still cut interest rates two to three times in the final months of the year, with a total reduction of about 0.5-0.75%.
This development, according to UOB, continues to put pressure on expectations that VND interest rates will be cut to support production and business. High USD interest rates will also continue to attract holding USD and USD-denominated assets in the US and globally. As a result, central banks may face difficulties in implementing monetary policies to ensure USD/VND exchange rate stability and expand foreign exchange reserves. The likelihood of commercial banks significantly reducing deposit and lending rates in the final months of the year is low.
Currently, deposit interest rates at commercial banks are generally stable, remaining below 6% per year. According to data from the state bank, the average new lending rate has reached 6.23% per year, down 0.7 percentage points compared to the end of 2024.
As of 28/7, total system credit has increased by 9.64% compared to the end of 2024. The regulator has also recently added credit growth targets for banks.
Quynh Trang
