Inflationary pressure remains big next year: SBV Governor

12/11/2021 12:11

It is possible to keep the inflation under 4 percent this year but inflationary pressure is expected to be great next year, Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong told the National Assembly’s Q&A session on November 12.

Since the outset of COVID-19 in Vietnam last year, the SBV has cut regulatory interest rates three times by 1.5 – 2 percent in total, Hong said, noting that this was a major cut compared to other regional countries.

The central bank has also requested domestic lenders to reduce interest rates on both new and old loans, she added. The lenders have slashed around 30 trillion VND, or over 1.32 billion USD, in interest payment for customers affected by the COVID-19.

She unveiled the SBV will instruct the banking system to further cut operation costs so as to make additional interest rate cuts and ensure the security of the system in the coming time.
It will also actively coordinate with relevant ministries and agencies to develop new support packages in the form of interest cuts for the affected, with macro-economic stability, inflationary risks and safety risks to the banking system taken into account, she said./.
Source: VNA
 



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