PM requests removing bottlenecks in monetary policy management
VOV.VN - Prime Minister Pham Minh Chinh has asked the State Bank of Vietnam to apply a flexible monetary policy, especially in credit and interest rate management, in order to support business operations and the national economy as a whole.
In his address to a national conference on the monetary policy management for 2024 in Hanoi on March 14, Chinh first reviewed the gradual recovery of the national economy in recent times, especially in the first two and a half months of 2024, attributing the gains to contributions by businesses and credit organisations.
According to the PM, the Government has organized a number of conferences to promote production and ensure credit growth in recent times. The State Bank has also operated a flexible monetary policy to respond to market fluctuations, while businesses have restructured their operations to maintain and expand operations in difficult contexts.
However, the economy remains in difficulty, and the primary task for the State Bank is how to manage the monetary policy to promote economic growth, control inflation, stabilize the macroeconomy, and ensure great balances, he said.
The PM pointed to the fact that businesses still find it difficult to access bank loans while bank deposits are hitting an all-time high despite constant interest rate cuts.
“What are the bottlenecks and what are the causes?” he raised the question. “Banks are considered the lifeblood of the economy, and if this bloodstream is clogged, the economy will not be healthy.”
The government leader requested that the bank sector increase businesses’ accessibility to credit, optimize management and operating capacity, foster bank-business connections, and strengthen supervision, inspection, and risk prevention, and combat corruption.
He also asked the bank sector to further axe loan interest rates and operational transaction costs, further streamline administrative procedures, reduce harassment for people, and combat negativity in banking activities.
He reminded the sector to closely monitor the world and domestic situation to introduce and implement the monetary policy proactively, flexibly, promptly and effectively, towards the ultimate goal of maintaining macroeconomic stability, controlling inflation, and ensuring major balances of the economy.
Vietnam aims to secure economic growth of 6-6.5% and keep the consumer price index at 4-4.5% this year.
