Central bank asked to manage interest rates

The request was made in official telegram 135/CD-TTg sent to the State Bank of Vietnam (SBV) Governor, the Minister of Public Security, and the Government Inspector General on December 16.

The PM asked the central bank to coordinate with related agencies to keep tabs on the regional and international situation as well as changes and adjustments in financial and monetary policies of big economies to have timely and effective policy responses.

The SBV must intensify efforts to drastically and effectively implement measures and tasks in managing interest and exchange rates and credit growth, the cabinet leader said, suggesting a focus on reducing lending interest rates.

Credit institutions engaging in unfair or noncompliant interest rate competition, including both deposit and lending rates, must be strictly handled, the Premier said, urging the central bank to step up inspections and supervisions over the operation of the institutions.

Credit institutions should focus lending on priority production and business sectors and traditional economic growth drivers, such as investment, consumption, and export, along with digital transformation, green transition, climate change response, circular economy, sharing economy, science-technology and innovation, he said.

Priorities should be given to boosting growth in parallel with ensuring macro-economic stability, controlling inflation, and maintaining major economic balances, striving for an economic growth rate of at least 8 percent in 2025 in order to lay the bedrock for double-digit growth in the 2026-2030 span, wrote the telegram.

By: VLLF