Vietnam’s interest rate forecast to remain unchanged

HANOI, Oct. 22 (Xinhua) — The State Bank of Vietnam (SBV) may find it difficult to reduce policy interest rate in 2024 as it must consider many factors related to economic growth and inflation, Vietnam News reported on Tuesday, citing experts.
According to SBV Deputy Governor Dao Minh Tu, the central bank has 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.
Economist Nguyen Xuan Thanh said that some Asian central banks had reduced interest rates, which left room for Vietnam to manage the policy in the direction of reducing interest rates.
He said that it was difficult for the SBV to reduce the rate in the fourth quarter of this year.
United Overseas Bank’s analysts predicted that the SBV was likely to adopt a more targeted approach to support certain individuals and businesses in specific regions, rather than implementing a broad, nationwide tool such as interest rate cut. ■