HANOI, Oct 29 — Vietnam is expected to maintain a looser monetary policy, with interest rates projected to drop by 0.7 percentage points next year, reported Xinhua, quoting Vietnam News today.
Economist Nguyen Xuan Thanh said that as the US 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.
Financial market research company WiGroup's general director Tran Ngoc Bau said that next year, Vietnam would have a lot of room for easing monetary policies when inflation and exchange rates ease.
Asian Development Bank chief economist Nguyen Ba Hung said that although 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.
The central bank's Deputy Governor Dao Minh Tu recently said 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.
— Bernama
