PM asks for enhancement of monetary policy management

Prime Minister Pham Minh Chinh has required the State Bank of Vietnam (SBV) to proactively, flexibly, promptly, and effectively manage the monetary policy in combination with the expansionary fiscal policy and others.

In an official dispatch signed by the PM on December 16, the Government leader asks the central bank to coordinate with relevant agencies to continue to keep watch over the regional and international developments, including changes in financial and monetary policies of major economies, to analyze and respond with timely and effective policy measures.

The SBV needs to intensify efforts to drastically and effectively implement measures and tasks in managing interest and exchange rates, and credit growth.

The SBV should continue implementing effective and stronger measures within its authority to reduce lending rates across the credit institution system, supporting the public and businesses in their production and business, according to the dispatch.

The central bank is instructed to enhance inspections and supervision over operation of credit institutions, and strictly handle those engaging in unfair or noncompliant interest rate competition.

The PM directs credit institutions to focus lending on priority production and business sectors and traditional economic growth drivers, such as investment, consumption, and export, along with new engines like digital transformation, green transition, climate change response, circular economy, sharing economy, science-technology, and innovation. At the same time, they must strictly control credit in high-risk sectors to ensure safe and effective credit activities.