Banks cut rates as credit growth gains pace

Speaking at the event, Deputy Governor Pham Thanh Ha noted that in the early months of 2026, the global environment remained complex and unpredictable.

Deputy Governor Pham Thanh Ha addressing the meeting

Geopolitical tensions, particularly the escalation of conflict in the Middle East, have exerted significant pressure on global commodity and financial-monetary markets. Oil prices have surged, while supply chains have faced disruptions.

“In that context, central banks have responded more cautiously to the risk of inflation rebounding. These developments are placing pressure on monetary policy management in open, emerging and developing economies like Vietnam,” he said.

Despite such challenges, Vietnam’s economy recorded GDP growth of 7.83 per cent on-year in the first quarter. Macroeconomic stability has been maintained, with inflation kept under control. Monetary policy management and banking sector performance have played an important role in these overall achievements.

Regarding interest rate management, the Deputy Governor said that in the early months of the year, the SBV kept its policy rates unchanged, enabling credit institutions to access funding at low cost and thereby support the economy.

On April 9, newly appointed Governor Pham Duc An chaired a meeting to expedite banking sector tasks, where participating banks were unanimous on following the direction of the government and the SBV on lowering market interest rates to support businesses and households.

Pham Chi Quang, director-general of Monetary Policy at SBV, said that following the meeting with the new governor, most commercial banks demonstrated strong agreement with the central bank’s policy on lowering interest rates.

“Immediately after the meeting, based on our preliminary monitoring up to today, around 26 commercial banks have simultaneously reduced their listed interest rates across channels, from in-branch transactions to online platforms via internet-based applications. Most adjustments have focused on tenors of over six months, in line with the SBV's orientation,” Quang said.

“We expect that in the coming period, the spillover effects of lower deposit rates will help banks reduce funding costs, thereby creating room to further cut lending rates and support economic growth,” he added.

According to Deputy Governor Ha, in credit management, the central bank is targeting system-wide credit growth of around 15 per cent, with adjustments to be made in line with actual developments, ensuring inflation control, macroeconomic stability, and the safety of the credit institution system.

The SBV will continue to conduct monetary policy in a proactive and flexible manner, in close coordination with fiscal policy and other macroeconomic measures, while maintaining the priority of keeping average inflation at around 4.5 per cent in 2026, thereby supporting macroeconomic stability.

Accordingly, the SBV will flexibly manage open market operations in line with monetary policy objectives and provide timely liquidity support to credit institutions.

“With these coordinated measures, as of March 31, total outstanding credit across the system reached over $767.2 billion, up 3.18 per cent compared to the end of 2025,” Deputy Governor Ha said.

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