The leader of the Monetary Policy Department (SBV) said that the whole year CPI can be controlled at 4%, monetary policy is enough to stabilize interest rates and exchange rates.
After the US Federal Reserve (Fed) raised interest rates by 0.75% – the largest increase since 1994, a series of central banks also reacted immediately. Other countries also adjusted interest rates to follow the Fed’s increase, ranging from 0.5-1%.
The USD-Index has also increased by 9-10% compared to the beginning of this year, causing a series of currencies of many countries to depreciate sharply (the baht depreciates by more than 7%, the Taiwanese dollar depreciates). 5%, yen depreciated 14.6%…).
In the context that interest rates and exchange rates in many countries tend to fluctuate strongly, Mr. Quang pointed out a positive point in the domestic market when the level of deposit and lending interest rates increased very slightly by 0.09% and VND Vietnam only depreciated about 2%.
Deputy Director General assessed that Vietnam will be under great pressure when global inflation increases rapidly, especially the price of oil and input materials for production activities increase sharply due to supply chain disruptions caused by the Covid-19 epidemic. -19 and the war situation in Ukraine.
However, he said, “Vietnam can completely control the consumer price index (CPI) for the whole year at 4% and enough room for monetary policy to ensure the stability of interest rates, exchange rates, import restrictions on inflation”.
Some organizations also recently forecasted the monetary policy response of the State Bank in the context of global escalation in inflation, a series of central banks also raised the basic interest rate. HSBC and ACBS both set a scenario that the operator can raise interest rates by 0.5 percentage points in the third quarter or this year.
Vietnam’s inflation is also forecasted by many international organizations to increase this year, but it is still easier to breathe than many countries in the region.
Energy price inflation in Vietnam has also persisted for a while, but the Government is also considering additional solutions such as tax reduction to lower gasoline prices. The food group also experienced an increase in prices, but Vietnam is self-sufficient in food (accounting for 40% of the basket of goods), so inflation pressure is less than other countries.