VOV.VN - The State Bank of Vietnam (SBV) has decided to raise operating interest rates by approximately 1% as of September 23 in an effort to keep inflation in check and maintain the macroecnomic stability.

The State Bank of Vietnam (SBV) will persist in monetary policy management solutions towards macroeconomic stability, but closely follow all developments to manage the situation in an appropriate manner, SBV Governor Nguyen Thi Hong said, given the Federal Reserve System (Fed)’s latest interest rate increase.

As the tightening of lending and corporate bond issues is hitting the property sector, the market is doomed to grapple with severe financial hardships.

Capital account restrictions largely insulate interest rates in Vietnam from global monetary tightening and the country’s policy rate is expected to increase 50 basis points to 4.5% by end-2023, according to Fitch Ratings.

Prime Minister Pham Minh Chinh chaired a meeting on July 28 to discuss short- and long-term measures for keeping inflation under control, stabilising the macro-economy, and promoting socio-economic recovery and development.

VOV.VN - The State Bank of Vietnam will continue to keep interest rates unchanged in order to sustain macro-economic stability and control inflation, in contrast with the ongoing trend adopted by central banks of many countries worldwide, according to economic experts.

Experts forecast that bank net interest margins (NIM) will decline as inflation rises next month.

The Government has set the budget overspending cap in 2022-2023 at 1%-1.2% of the country’s gross domestic product (GDP), not exceeding VND240 trillion.

Thanks to increases in savings interest rates, deposits at banks increased strongly in the first two months of this year after declining last year.

Loans of pandemic-hit enterprises will enjoy an interest rate cut of 2% under a government support package to remove difficulties for the businesses.