Banks in Vietnam would lower interest rates on their dong deposits to around 10 percent by the end of 2012, from 14 percent now, a state-run newspaper quoted the central bank governor as saying on Thursday.
The State Bank of Vietnam will use the government's target of keeping inflation next year below 10 percent while regulating its monetary policies, Governor Nguyen Van Binh was quoted by the online newspaper Dan Tri (dantri.com.vn) as saying. "If the target is achieved, we hold that the rate on deposits by the end of next year in the banking sector would be around 10 percent," Binh was quoted as telling reporters on the sidelines of a government meeting.
The central bank will aim for annual bank loan growth of 15-17 percent next year to accommodate the country's economic growth, projected at 6.0-6.5 percent, Binh said, reiterating earlier credit growth targets. Loans are estimated to have risen 12 percent this year, after expanding 27.65 percent in 2010, Binh quoted Deputy Prime Minister Vu Van Ninh as telling the Thursday meeting to discuss measures to reach 2012 socio-economic targets.
The central bank has tightened lending to help control inflation, which is estimated at 18.12 percent for 2011, slightly above a government projection of 18 percent, state media quoted Planning and Investment Minister Bui Quang Vinh as saying at the meeting.
Last Saturday, Prime Minister Nguyen Tan Dung said Vietnam should aim for bank credit growth of 15 percent next year, while bankers have expected interest rates to soften in 2012.