Ms. Nguyen Thi Hong, Governor of the State Bank of Vietnam, tells Vietnam Economic Times / VnEconomy’s Phan Linh about the need for adaptive monetary policies to meet the government’s 2025 targets of 8 per cent GDP growth and inflation of below 4.5 per cent amid global uncertainties and trade tensions.
Mr. Tran Ngoc Bau, Founder and CEO of WiGroup, told the “WeTalk - Financial Market Prospects and Opportunities” seminar that inflation is not the most serious problem for the State Bank of Vietnam (SBV) to address, it is the USD/VND exchange rate. The actions of the SBV in recent times have, in fact, always been aimed at stabilizing the exchange rate. External factors mainly relate to US monetary policy, especially the significant strengthening of the USD.
Many businesses expect the State Bank of Vietnam to lower required reserve ratios, both to inject money into the economy and allow banks to have more capital and less capital costs so they can cut lending rates.
Since Covid-19 first broke out, central banks around the world have loosened monetary policies to support economic recovery. Changes are now being made, however, to deal with rising prices and inflation. In Vietnam, meanwhile, the CPI is still low and it will be difficult to reach GDP growth targets, so it is likely that the State Bank of Vietnam will maintain its loosened monetary policy as it is effective in supporting economic recovery and has not caused any significant concerns about inflation.
