SBV Governor explains high lending rates, credit room management
Hanoi (VNA) - Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong
provided explanations regarding the high lending rates and credit room management
during a plenary session of the 15th National Assembly’s ongoing
fifth 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 domestic
inflation was higher than the same period of 2021. Moreover, there was a great pressure on the devaluation of the Vietnamese dong as countries tightened
monetary policies and the US dollar experienced a strong appreciation.
At that time, the SBV saw the need to adopt flexible and synchronous
solutions to address these difficulties and avoid currency devaluation, which
would result in increased input costs and high inflation, she said, adding that
when the exchange rates became stable again and inflation eased, the SBV made
three adjustments to reduce lending rates by 0.9% compared to 2021 in the early
months this year.
When it comes to policy management, it is unadvisable to
let guard down in the face of inflation, Hong noted.
With the recent fluctuations in the US banks, she said
prioritising the safety of the banking system is a sound
choice of the SBV and Government.
According to her, the SBV carefully considered the solutions and
timing of its policies to achieve macroeconomic stability, ensure the safety of
the banking system, and create a business environment conducive for enterprises
and the public./.