Vietnam Central Bank Going Slow on Rate-Cut Calls Amid Risks
- Analyst sees limited option for SBV to tinker with rates
- Premier Chinh has stepped up pressure for flexible policy
A currency trader in Ho Chi Minh City.
Photographer: Kevin German/Bloomberg
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A month or so ago, Vietnam’s central bankers were rushing to ease monetary policy, sometimes within hours of the political leadership asking for an interest-rate cut. Not anymore.
After reducing rates four times this year, the State Bank of Vietnam is going slow on such actions even as Prime Minister Pham Minh Chinh has repeatedly pushed for further loosening of policies. Even a specific warning from the government that Vietnam may miss its 6.5% growth target this year hasn’t convinced the SBV to act yet.