Monetary policy governance requires thorough consideration: official
The economy records over 12.7 quadrillion VND (517.5 billion USD) in credit as of the end of September, up 6.92% from the end of 2022. (Photo: VNA)
As the governance of the monetary policy has to concurrently guarantee multiple targets, including reducing interest rates, expanding credit, stabilising foreign exchange rates, and ensuring credit institutions’ safety, thorough consideration is needed before any steps are taken, Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu.
Given this, the central bank will continue the work in a way that guarantees macro-economic stability. Interest rates will be kept stable, and rate cuts could be considered when conditions are in place to ensure inflation control, capital supply, and liquidity for credit institutions and the economy, he said.
It will also push ahead with perfecting legal documents, mechanisms, and policies on credit and stay ready to take measures to tackle difficulties and meet credit demand, Tu noted.
As of the end of September, the economy recorded over 12.7 quadrillion VND (517.5 billion USD) in credit, up 6.92% from the end of 2022. The credit growth has accelerated in recent months, according to the SBV.
There remains much room for credit to grow further, it opined.
Credit growth is hoped to gain speed during the last three months as usual. (Photo: VNA)
The SBV’s recent survey of credit institutions for the fourth quarter showed that outstanding loans of the entire banking system is expected to increase 4.6% in Q4 and 12.3% in the whole of this year, down 0.2 percentage point from the earlier prediction of 12.5%.
If credit expansion stands at 4.6% in Q4 as forecast, credit growth in the economy will reach just 11.52%, the SBV went on.
In its newly released macro report, the Vietcombank Securities Company (VBCS) said pressure on foreign exchange rates will remain at least until November. However, in favourable conditions, the Vietnamese currency, the dong, may depreciate at a reasonable pace of about 3% compared to the US dollar.
The forecast was based on the projection that in comparison with the monetary policies of global central banks after the September updates, the US dollar will maintain its high value until at least November.
Deputy Governor Tu expressed his hope that credit growth will gain speed during the last three months as usual.
The SBV will take strong measures, together with localities’ moves to address obstacles, to help businesses surmount difficulties, he added./.
Related News
Latest News
Capital market could be major financial source for private sector: WB
16:10 | 29/09/2024 Finance
Typhoon debt relief measures may impact bank profitability in Vietnam
18:47 | 27/09/2024 Finance
VAT reduction is necessary but not tool used every recession: Canadian expert
09:39 | 27/09/2024 Finance
Vietnam to achieve credit rating as set target
09:37 | 27/09/2024 Finance
More News
Control cash flow, target the right segment
14:14 | 26/09/2024 Finance
Taxation authority to hold dialogue with taxpayers in five localities
14:13 | 26/09/2024 Finance
HCMC Tax Department focuses on resolving land dossiers as soon as possible
09:04 | 26/09/2024 Finance
Many banks stop transactions of ATM magnetic cards
15:02 | 25/09/2024 Finance
Amending Law on Corporate Income Tax must ensure budget revenue and overcome tax evasion
08:58 | 25/09/2024 Finance
Digital Transformation in financial sector is urgent and important task
09:18 | 24/09/2024 Finance
Insurance creates trust and peace of mind for customers affected by typhoon No. 3
10:05 | 23/09/2024 Finance
Foreign institutional investors allowed to buy stocks without 100 percent pre-funding -trading
09:07 | 22/09/2024 Finance
Anti-corruption in Finance: Resolutely eliminating cumbersome administrative procedures
08:40 | 21/09/2024 Finance
Your care
Capital market could be major financial source for private sector: WB
16:10 | 29/09/2024 Finance
Typhoon debt relief measures may impact bank profitability in Vietnam
18:47 | 27/09/2024 Finance
VAT reduction is necessary but not tool used every recession: Canadian expert
09:39 | 27/09/2024 Finance
Vietnam to achieve credit rating as set target
09:37 | 27/09/2024 Finance
Control cash flow, target the right segment
14:14 | 26/09/2024 Finance