80TH Anniversary August Revolution and National Day
Log in
Business

Policy rate cut not in sight at present: C.bank

The timing and adjustment of policy rates must be decided based on the actual situation.

The State Bank of Vietnam (SBV) does not consider lowering its current policy rates at present as such a move would depend on the economic performance.

 SBV’s Vice Governor Dao Minh Tu. Photo: SBV

SBV’s Vice Governor Dao Minh Tu made the remarks in reference to recent rumors that the central bank may adopt a more easing monetary approach in the coming time.

“The timing and adjustment of policy rates must be decided based on the actual situation, with the ultimate goal of keeping inflation under control and the stability of the exchange rate,” Tu said.

Meanwhile, Tu expected any new changes to the policy rates have to stay in line with the goal of ensuring macro-economic stability, along with the interest of businesses, people, and the security of the banking sector in the short- and mid-term.

In 2020, the SBV cut the policies rates three times for a combined of 1.5-2 percentage points per annum to support the economy amid Covid-19 impacts. Tu said, for the time being, the capital mobilization and lending rates of commercial banks are aligned with current economic indicators.

“We have to take into consideration the rights of people depositing money in the banks,” Tu stressed.

Moreover, given the abundant liquidity at banks and demand for credit is still low as the pandemic situation remains serious across the country, lowering policy rates or adjusting monetary instruments are “inappropriate” at this moment.

“The SBV would continue to closely monitor the market situation for timely adjustment, if necessary,” stated Tu, adding the SBV’s main objective is to manage policy rates for the interest of the people and businesses in the short-term and supporting a speedy economic recovery in the post-pandemic period.

For the last year and the first seven months of 2021, Tu noted the SBV has managed the monetary policy in a flexible manner and provide the legal framework for banks to restructure debts, waive or cut interest rates for customers affected by the pandemic.

To date, nearly 800,000 customers have received banks’ support with total outstanding loans of VND2,000 trillion (US$87.73 billion), and another VND18.8 trillion in interest rates were foregone.

In last month's meeting, 16 banks and credit institutions agreed to cut interest rates for total loans of VND20.3 trillion ($886.55 million) from now until late 2021.

Reactions:
Share:
Trending
Most Viewed
Related news
World Bank praises Vietnam’s progress in public debt management

World Bank praises Vietnam’s progress in public debt management

Administrative and economic reforms have helped Vietnam keep public debt under control.

Vietnam set to lead ASEAN economic growth in 2025: AMRO

Vietnam set to lead ASEAN economic growth in 2025: AMRO

Vietnam’s positive GDP growth forecast is backed by its strong performance in the first half of 2025.

Amazon to support 30 Vietnamese firms go global 

Amazon to support 30 Vietnamese firms go global 

Amazon Global Selling Vietnam will help Vietnamese companies strengthen their global competitiveness through e-commerce and digital transformation.

Vietnamese economy to remain resilient in 2025-2026: ADB

Vietnamese economy to remain resilient in 2025-2026: ADB

Despite global uncertainties, economic and administrative reform will bolster Vietnam's economic growth in 2025 and 2026.

PM urges Japan to invest in Vietnam’s major infrastructure projects

PM urges Japan to invest in Vietnam’s major infrastructure projects

The contributions of the Japanese corporation benefit the localities hosting the projects and help advance the strategic partnership between Vietnam and Japan.

Khanh Hoa to host first post-merger investor conference to boost business confidence

Khanh Hoa to host first post-merger investor conference to boost business confidence

Through this conference, Khanh Hoa is committed to providing the best business environment for investors, as the province aims to become a centrally governed city by 2030.

Vietnam gets US$3.8 billion from fruit and vegetable exports in Jan-Jul 

Vietnam gets US$3.8 billion from fruit and vegetable exports in Jan-Jul 

The exports in the first seven months account for 47% of the whole year's target.

Hanoi expands local access to social policy credit services

Hanoi expands local access to social policy credit services

This policy reflects Hanoi’s commitment to decentralizing credit services and ensuring that social lending remains accessible and responsive to local needs.