IMF Advises Vietnam Against Cutting Interest Rates ‘Prematurely’
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Vietnam should avoid reducing interest rates too soon as that may weaken its currency and raise questions about the government’s commitment to fighting inflation, the International Monetary Fund said.
“It is important that monetary policy not be eased prematurely, because the recent improved sentiment towards the dong remains relatively fragile,” Benedict Bingham, the IMF’s senior resident representative in Vietnam, said in an e-mail today. His comments are a summary of remarks he made at a Sept. 6 meeting in Hanoi attended by officials including Prime Minister Nguyen Tan Dung.