IMF Says Vietnam’s Lack of ‘Clarity’ Hurts Confidence

Vietnam’s “repeated” calls for commercial banks to lower their lending rates after tightening policy may damage market confidence, the International Monetary Fund said.

Vietnam began tightening monetary policy in November, terminating some loan subsidies and liberalizing policy on lending rates, the IMF said in a note posted on its website. This led to a slowdown in credit growth, the IMF said. Vietnam announced Nov. 25 it would raise its benchmark interest rate to 8 percent from 7 percent on Dec. 1.