Deputy Governor Pham Thanh Ha outlines monetary policy stance and future interest rate management

At the Government’s regular press conference for March 2026 held on the afternoon of 4 April 2026, Deputy Governor Pham Thanh Ha discussed the direction of the State Bank of Vietnam (NHNN)’s monetary policy operations in the period ahead. He noted that the international environment remains complex and unpredictable, particularly due to geopolitical tensions and regional conflicts in the Middle East that have pushed oil prices higher and created inflation challenges for many countries. This has posed difficulties for managing monetary policy operations and banking activities.

Against that backdrop, NHNN has proactively and flexibly implemented policy measures in line with Government directives to help control inflation, stabilize the macroeconomy, and support sustainable economic growth. NHNN has coordinated tools to meet payment and settlement needs of the economy while maintaining monetary stability. The central bank has continued to keep policy rates unchanged to facilitate access to low-cost funding for credit institutions to support the economy.

NHNN guidance to stabilize market interest rates

Regarding market interest rates, NHNN issued dispatch 2342/NHNN-CSTT dated 30 March 2026, requiring credit institutions and foreign bank branches to implement measures to stabilize market rates and contribute to monetary stability. The dispatch calls for:

• Strictly enforcing NHNN lending-rate regulations.
• Strengthening internal controls and promptly addressing violations of lending-rate rules.
• Balancing funding with liquidity and solvency to avoid disrupting market rates.
• Continuing to publish lending rates on banks’ official portals to inform borrowers.

Factors keeping market rates under upward pressure

Deputy Governor Pham Thanh Ha said that market rate levels remain under upward pressure due to several factors, including:

• System-wide deposit mobilization and competition from other investment channels, which could push deposit rates up from late 2025 after a period of stability.
• Credit growth growing faster than deposits, indicating high demand for funds to meet the economy’s financing needs, especially in the context of two-digit growth targets.

Outlook and NHNN’s next steps

In the upcoming period, many major international organizations assess that the global situation remains uncertain, with risks affecting growth, inflation, and global stability. NHNN stated it will continue to monitor global and domestic economic developments to conduct proactive, flexible, and coordinated monetary policy operations, in close cooperation with expansionary fiscal policy and other macro policies to maintain inflation control, macroeconomic stability, and sustainable growth.

Specifically on interest rates, NHNN said it will monitor domestic and international developments and market rates to adjust interest rates in line with macroeconomic developments, inflation, and monetary policy objectives. It will also use tools flexibly to support liquidity for TCTD and continue to require TCTD to publicly disclose lending rates.

Requirements for credit institutions (TCTD)

On the side of TCTD, Deputy Governor Pham Thanh Ha emphasized the need for strict implementation of NHNN’s guidance in dispatch 2342/NHNN-CSTT dated 30/3/2026 to stabilize the interest-rate environment, while balancing credit growth with deposit growth to avoid disrupting the market.

Lan Anh