Chủ đề: loosening monetary policy

Analysts believe that the State Bank of Vietnam (SBV) will not reverse its monetary policy even though inflationary pressure is increasing due to cost-push factors. According to the VnDirect Securities Company, the three main reasons are that the CPI is still low, domestic demand is still relatively weak, and the SBV still prioritizes the goal of maintaining low lending rates to support the recovery of businesses and the economy after the pandemic.

As a popular destination for FDI, Vietnam also welcomes a large inflow of foreign currencies. The country’s banking system has maintained low interest rates, which is in line with ongoing trends, as central banks around the world are applying loosened monetary policy.