Vietnam’s Policy Credibility ‘Low’ as Prices Rise, JPMorgan Says

The Vietnamese central bank’s lack of independence and credibility as well as a “vague” monetary policy framework have allowed inflation to accelerate in the Southeast Asian nation, JPMorgan Chase & Co. said.

The policies “cause greater volatility, poorly anchored inflation expectations, and embedded Vietnamese dong devaluation expectations,” Matt Hildebrandt, a Singapore-based economist at JPMorgan Chase, said in comments prepared for a presentation today at a conference in Ho Chi Minh City.