SSI expects both deposit and lending rates to be stable this quarter and the beginning of the second before gradually rising at the end of that quarter as demand for credit increases. Some have already increased rates for personal customers by 0.1-0.4 percentage points.

Bao Viet Securities also expects deposit interest rates to rise since the pandemic is under control, the country has begun vaccination and inflation could possibly rise, according to its latest report.

Since the beginning of March, a majority of banks have cut deposit rates, with only a few private ones increasing them for personal customers. The current 12-month rate offered by state-owned lenders including Agribank, BIDV and Vietinbank is 5.6 percent, while Vietcombank offers one of 5.5 percent. Private lenders’ 12-month rates range from 5.1-6.8 percent.

According to the State Bank of Vietnam, bank credit growth was 12.13 percent last year, and it targets growth of 12 percent this year.

However, SSI had estimated in a note in January growth to be 13-14 percent as the economy revives.