Vietnam May Have Cut Policy Rates Too Quickly, IMF Says
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Vietnam still faces inflationary pressures, according to the International Monetary Fund, which said it would have preferred a slower pace of interest-rate cuts last year by the country’s central bank.
The State Bank of Vietnam reduced borrowing costs for a sixth time last year on Dec. 24, two weeks after the IMF said the central bank should maintain its policy rate. The refinancing rate was cut to 9 percent from 15 percent at the beginning of the year, while the discount rate and the cap on dong deposits were also lowered.