The State Bank of Vietnam could increase credit growth limits for credit institutions this year or even launch stronger monetary policies to aid the country’s post-pandemic growth, Governor Le Minh Hung has said.
Bond yield rates are forecast to increase in the short term as the Government looks at ways to support the socio-economic recovery once the coronavirus crisis abates.
The State Bank of Vietnam (SBV) has said it is ready to intervene in the market when the intervention rate is lower than the current listed exchange rate on a large scale by spot or forward transactions to stabilise the foreign exchange market and the macro-economy.
A report by securities firm SSI on the financial and monetary market says deposit interest rates are likely to be cut by 0.5- 1 percentage point this year, and lending interest rates would also be cut by at least 0.5 percentage points as required by the Government.
Power prices will increase by an average of 8.36 percent at the end of this month, said Deputy Minister of Industry and Trade Hoang Quoc Vuong on March 5.
Vietnam is deemed highly likely to curb its inflation below 4 percent in 2019, experts said at a seminar in Hanoi on January 3, which focused on national market and price movements during 2018 and forecasts for 2019.
In 2018, the banking sector witnessed many achievements such as increasing foreign exchange reserves, remittances, and profit, but also faced challenges in interest and foreign exchange rates.
Vietnamese companies are depending too much on bank loans, and when the number of companies increases, it will reduce their chance of receiving financing from financial institutions.
Deputy Prime Minister Vuong Dinh Hue, Chairman of the National Financial and Monetary Policy Advisory Council, chaired a meeting in Hanoi on September 28 to review monetary policy for the third quarter of 2018 and outline tasks for the coming time.
Many Vietnamese airlines have sought permission for fare hike on the ground that the world prices of fuel, which accounts for a big proportion of airlines’ operating expenses, are rising.
Foreign exchange rates are likely to rise strongly due to concerns that the US-China trade war may be escalating, said Director of the Vietnam Institute for Economic and Policy Research (VEPR) Nguyen Duc Thanh.
Deputy Prime Minister Vuong Dinh Hue has asked the State Bank of Vietnam to actively and proactively direct monetary policy; closely combine with fiscal and macro-policies to control inflation; and prevent double inflation caused by higher foreign exchange rates and global fuel prices.
Thailand does not intervene with foreign exchange rates to gain competitiveness in trade, the local central bank’s chief was quoted by Asian Nikkei Review as saying.
Focusing on business production development and creating a healthier business environment remain major requirements for all departments and sectors, Prime Minister Nguyen Xuan Phuc said.
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