Last year, the monetary market experienced fluctuations caused by high interest and foreign exchange rates. This year, bank interest rates will remain high as a result of inflation in 2010.

However, experts said the current deposit interest rate of 14 percent per year and lending interest rate of 17-18 percent per year will not increase.

In the first quarter of 2011, the monetary market will continue to face difficulties in terms of capital and liquidity. It is expected that in the second quarter, commercial banks will reduce interest rates to 15-16 percent per year, experts forecast.

This year, the State Bank of Vietnam aims to keep the credit growth target of 23 percent, two percent lower than last year. It focus will be more on the production sector and less on non-production areas.

SBV’s monetary policies should be more flexible to meet unexpected developments in the world market this year.