Vo Tri Thanh *Vo Tri Thanh Global central banks are in a dash to raise interest rates to cool rampant inflation and their moves are challenging the State Bank of Viet Nam’s policymaking in a way to support the economic recovery while sustaining macroeconomic sustainability. Last week, the US Federal Reserve (Fed) raised interest rates by another 75 basic points (bps) – the second straight month and its third this year – in an effort to fight inflation which hit a 40-year high of 9.1 per cent in June. That takes the cumulative June-July increase to 150 bps – the steepest since the early 1980s. The European Central Bank on July 21 increased its benchmark interest rate by 0.5 per cent for the first time in 11 years and is signaling further hikes this year after consumer prices in the euro area are expected to rise to 8.9 per cent in July. Data from Reuters showed seven central banks of the Group of Ten delivered 350 basis points of rate hikes last month – nearly half of the … [Read more...] about Stability of Vietnamese dong under pressure of global headwinds
