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Vietnam’s interest rates to decrease 0.7 percentage points next year

HANOI, Oct. 29 (Xinhua) — Vietnam is expected to continue pursuing a looser monetary policy, with interest rates forecast to decrease 0.7 percentage points next year, Vietnam News reported on Tuesday.
Economist Nguyen Xuan Thanh said that as the U.S. Federal Reserve and many central banks had entered a cycle of cutting interest rates, Vietnam would continue to maintain a loose monetary policy to support growth next year.
Tran Ngoc Bau, general director of financial market research company WiGroup, said that in 2025, Vietnam would have a lot of room for easing monetary policies when inflation and exchange rates ease.
Nguyen Ba Hung, chief economist of the Asian Development Bank in Vietnam, said though the central bank continued to pursue a supportive monetary policy, the room to implement this policy had been significantly limited.
It is necessary to support fiscal policy measures, increase public investment disbursement and further reform state management to reduce the burden on the economy, he said.
The central bank’s Deputy Governor Dao Minh Tu said recently the bank had not decided on whether to maintain the interest rate, as currently, or reduce it to support the economy.
The bank will consider and decide on the issue in the coming time, based on inflation, growth and exchange rate, he said. ■

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