Deputy Prime Minister Vuong Dinh Hue at the meeting (Source: VNA) Hanoi (VNA) – 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. Members of the council said Vietnam’s financial and monetary policy, and macro-economy remain stable this year amid geo-political and commercial instability in the world. The country’s gross domestic product (GDP) grew by 6.98 percent in the first nine months of this year, the highest since 2011 and surpassing the set target. Inflation was under control, below the target set by the National Assembly. Monetary policy has been directed actively and flexibly and combined with fiscal policy in order to develop the government bond and monetary markets, thus cutting lending costs for the State budget, they said. The … [Read more...] about Experts review monetary policy for third quarter
VietNamNet Bridge - In the context of pressure on inflation and exchange rate, macroeconomic stabilization must be the top priority, experts say. Vietnam begins to tighten the monetary policy SBV(the State Bank of Vietnam) is now trying to withdraw dong from circulation through OMO (open market operation) after pumping a huge amount of dong into circulation when purchasing foreign currencies. After slashing the dollar selling price on July 3, a senior official of SBV said besides the drastic measures to deal with the dong oversupply to ease pressure on the exchange rate and inflation, SBV will strictly control credit growth. VIB in June and the first days of July raised the deposit interest rates twice. The offered interest rate for 1-2 month term deposit increased sharply by 0.4 percent, while it was 0.3 percent for 3-month deposits and 0.1 percent for 6-11 month deposits. RELATED NEWS Vietnam advised to tighten monetary policies Flexible monetary … [Read more...] about Vietnam begins to tighten monetary policy
The consumer price index jumped by 2.22 per cent in June and 4.6 per cent from a year earlier, a seven-year high, the General Statistics Office (GSO) reported. — Photo thoibaonganhang.vn The rest of this year is likely to be a difficult period for the economy meaning challenges for the Government in achieving the targets set for the year. The problems include a weakening of the dong against the dollar and rising inflation, interest rates and public debt, and the Government will be walking a tightrope in terms of monetary policy. The consumer price index jumped by 2.22 per cent in June and 4.6 per cent from a year earlier, a seven-year high, the General Statistics Office (GSO) reported. Inflation in the first six months of the year was up to 3.29 per cent. GSO experts attributed the sharp increase in inflation in recent months to the rise in prices of several major products and services. Of 11 major categories of goods and services, nine saw prices increasing. Transportation … [Read more...] about Trillion đồng question: to tighten monetary policy or not?
PM Nguyen Xuan Phuc speaks at the session (Photo: VNA) Hanoi (VNA) – Prime Minister Nguyen Xuan Phuc said he is looking for the honest recommendations from experts on issues facing Vietnam’s monetary and financial policies, helping the Government come up with prompt actions. He made the statement while attending a periodical session of the National Council for Financial and Monetary Policy Consultation in Hanoi on July 18. Speaking at the session, the Government leader lauded economic growth for the first half of the year, which was at its highest in seven years, and considered the council a helpful source of information. Affirming that the Government will not adjust its socio-economic goals set for 2018, he requested public agencies and sectors to step up their reform efforts to meet the targets. Phuc asked experts from the council to provide forecasts on inflation trends for the mid- and long-term, as well as suggest solutions for Vietnam to fulfil its 2018 goals. … [Read more...] about Vietnam seeks experts’ comments to perfect monetary policy: PM
VietNamNet Bridge - Fitch Ratings has advised Vietnam to gradually tighten monetary policies to stabilize the macro economy and have an opportunity for investment level upgrading. Vietnam has been advised to tighten monetary policy Prior to that, HSBC, ANZ and IMF also recommended Vietnam tighten monetary policies. The monetary policy loosening has pushed the prices of some assets and investment items up in the last three years. The stock market has been increasing more rapidly since 2016, while the real estate market has heated up since early 2017. Analysts all believe that it is now time to tighten monetary policies, especially when other economies, from developed to emerging, all have raised their prime interest rates. The US FED plans an interest rate increase this year after it did this three times in 2017. RELATED NEWS Vietnam economy runs on loans: economist Vietnamese put gold, dollars in investment and business production Kim Mai … [Read more...] about Vietnam advised to tighten monetary policies