By Reuters
HANOI, April 9 (Reuters) – Vietnam’s central bank said on Thursday it will continue implementing flexible monetary policies while maintaining its main policy rates, urging commercial banks to lower deposit and lending rates to bolster economic growth.
The announcement came after the first meeting chaired by newly appointed SBV Governor Pham Duc An with the heads of leading commercial banks. The Middle East conflict, higher oil prices and domestic capital needs have all pressured monetary policy.
Main policy interest rates will be maintained, allowing credit institutions to access low-cost funding and support economic growth.
Commercial banks are also required to lower lending rates to support businesses and stimulate the economy.
The SBV will provide timely liquidity assistance through flexible open market operations and tools such as foreign exchange swaps and refinancing loans.
The central bank reaffirmed a 15% credit growth target for 2026, prioritising loans for sectors such as production, agriculture, and other growth drivers. Lending to high-risk areas, like real estate, must be closely monitored to minimise bad debt risks.
The SBV pledged to manage exchange rates and markets flexibly, absorb external shocks, synchronise policy tools, and intervene through foreign currency sales when necessary to stabilise macroeconomic conditions and control inflation.
Year-to-date total credit growth was 2.65% at end-March, reaching 19.08 million billion dong ($724.92 billion).
Vietnam aims to keep inflation under 4.5% this year.—Reuters
