The State Bank still has enough room for monetary policy to stably control interest rates and exchange rates

 

At the press conference on banking information on the first 6 months of 2022 of the State Bank (on the afternoon of June 18), Mr. Pham Chi Quang - Deputy Director of the Monetary Policy Department made an assessment of the increasing impact. interest rates of the US Federal Reserve (Fed) to the rates and interest rates in Vietnam.



According to Mr. Quang, after the Fed raised interest rates by 0.75%, the biggest increase since 1994, a series of countries have raised interest rates closely following the rate of the Fed, up from 0.5-1 percentage points. 



Thus, it can be seen that the Fed raised interest rates affecting global capital flows. In particular, the USD-Index fluctuated from 103-105 points, up from 9-10% compared to the end of 2021, leading to a series of other currencies in the world strongly devalued such as Thai Bath and the dollar. 


Taiwan's devaluation of 7.33%, 5%, and Japanese Yen depreciation of 14.6% ...


In such a context, the deposit and lending interest rates in Vietnam only increased slightly by 0.09% and the VND only slightly devalued by about 2%, showing that the State Bank has followed the principle, sticking to stability. 


Macroeconomic determination, inflation control and economic recovery support after COVID-19.


Accordingly, the Deputy Director of the Monetary Policy Department assessed that the pressure on interest rates and exchange rates in Vietnam will be very great in the coming time with rapid global inflation. 



In particular, the price of oil and raw materials for production increased sharply after the global supply break caused by the COVID-19 epidemic plus the Russia-Ukraine war that created a very high level of inflation.



He also believes that, with the direction of the Government and the SBV's management, Vietnam can completely control the consumer price index (CPI) this year will be at 4% and still have enough room. monetary policy to ensure stable control of the interest rate level, thereby supporting the economy and limiting import inflation in the context of an open country and the context of high global inflation.

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