SBV Governor Nguyen Thi Hong (Photo: VNA) Hanoi (VNA) - Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hongprovided explanations regarding the high lending rates and credit room managementduring a plenary session of the 15th National Assembly’s ongoingfifth meeting in Hanoi on June 1.
Hong pointed out two reasons for high lending rates last year,including rapid and significant hikes in global interest rates while domesticinflation was higher than the same period of 2021. Moreover, there was a great pressure on the devaluation of the Vietnamese dong as countries tightenedmonetary policies and the US dollar experienced a strong appreciation.
At that time, the SBV saw the need to adopt flexible and synchronoussolutions to address these difficulties and avoid currency devaluation, whichwould result in increased input costs and high inflation, she said, adding thatwhen the exchange rates became stable again and inflation eased, the SBV madethree adjustments to reduce lending rates by 0.9% compared to 2021 in the earlymonths this year.
When it comes to policy management, it is unadvisable tolet guard down in the face of inflation, Hong noted.
With the recent fluctuations in the US banks, she saidprioritising the safety of the banking system is a soundchoice of the SBV and Government.
According to her, the SBV carefully considered the solutions andtiming of its policies to achieve macroeconomic stability, ensure the safety ofthe banking system, and create a business environment conducive for enterprisesand the public./.
