Hiking deposit interest rates helps ensure capital mobilisation for economy

At the Government’s regular press conference in Hanoi on October 29, the official affirmed that the central bank always directs credit institutions to concentrate capital for prioritised entities and business organisations that have great contributions to the national economic growth.

The State Bank is concentrating on directing and ensuring credit growth in accordance with the macro-economy and the ability to access capital of the economy as well as businesses, he noted.

Early this year, the central bank set a creadit growth target of 14%, higher than the levels of 2020 and 2021. As of October 25, the growth has expanded by 11.5% compared to the same period last year.

The recent adjustment of interest rates by the SBV aims to ensure that credit institutions have the ability to mobilise additional capital to ensure liquidity safety, and provide capital for the economy, he noted.

According to the official, many countries around the world also continue to raise interest rates for two reasons - fighting domestic inflation and supporting the devaluation of local currencies against the USD.

The most important issue is controlling inflation, contributing to stabilising the macro economy and ensuring liquidity of credit institutions as well as of the whole economy, he stressed.

After the State Bank of Vietnam implemented the new operational interest rate on September 23, all joint-stock commercial banks, with the exception of state-owned ones, have adjusted the deposit interest rate for most terms.

In an effort to continue implementing synchronous measures to control inflation, stabilise the macro-economy, and ensure the safety of the banking system, the State Bank of Vietnam (SBV) has just issued a number of decisions to adjust interest rates that take effect from October 25.

As exchange rate pressure grows when circumstances are unfavourable, the State Bank of Vietnam (SBV) has raised the operational interest rates by 100 basis points (1 per cent) before the November Fed meeting on October 24, according to a report recently provided by the SSI.