Trang Chủ
Binh quoted in Sai Gon Giai Phong (Liberated Sai Gon) newspaper that the central bank had previously slashed deposit interest rates according to the level of inflation in the country.
This year, the inflation was supposed to decrease to below 10 per cent. If it reached 8 or 8.5 per cent, the deposit interest rate would decrease to 9 or 10 per cent, he said.
Early this year, the central bank had set a target of trying to cut the deposit interest rate by one point per quarter if the country's macroeconomic environment was favorable, the governor said.
"However, we are likely to have conditions to cut the deposit interest rate more quickly than predicted thanks to recent macroeconomic developments, particularly with regard to inflation," Binh said.
He also said that the deposit interest rate should not slash lower than 9 or 10 per cent because this level was reasonable since it would still ensure the position of Vietnamese dong and therefore ensure the stability of the foreign exchange market.
With the deposit interest rate of 9 or 10 per cent per annum, depositing dong at banks would continue to be an attractive investment channel if compared with other options like gold, foreign currencies and real estate, Binh said.
He said a 1.71 per cent decrease in credit growth in the first four months was easy to understand in the context of curbing inflation.
In previous years, credit growth had stood at very high levels, with an average increase of 34 per cent over the last 5 years, and 29 per cent over the last 10 years. However, this year's credit growth would be controlled at between 14 and 17 per cent to continue reigning in inflation and stabilizing the macro economy.
Binh said that the central bank would closely watch the macro economy and initiate measures to help enterprises access bank loans at reasonable interest rates in order to help them maintain and develop their trading and production activities.
