The State Bank of Vietnam (SBV) will likely continue its tightened monetary policy in the remaining months of the year after its decision to strictly control lending to high risk sectors in the third quarter didn’t adversely affect the country’s economic growth, according to experts.
A flexible monetary policy supported stability in Viet Nam’s financial market and fostered economic growth this year, a National Financial Supervisory Commission (NFSC) official said in Ha Noi last week.
Consumer Price Index (CPI) growth this year is recorded at 1.84 percent--the lowest rate ever for the last decade. Experts said it a great success in inflation control but expressed concerns about low aggregate demand and businesses’ difficulties amid tight monetary policy at a seminar yesterday.
Mekong Housing Bank (MHB), one of Vietnam’s remaining wholly state-owned lenders, is set to go public this month. However, financial experts are concerned that the initial public offering will likely to be quiet due to the government’s tight monetary policy and bearish stock market this year.
WASHINGTON, June 22, 2011 (AFP) - The Federal Reserve left monetary policy in neutral Wednesday as it slashed US economic growth estimates, saying the slowdown was in part due to factors that were "likely" to be temporary.
The State Bank of Vietnam says it will keep the requirements of credit growth at below 20 percent and lending to non-productive sector limited to 16 percent by the end of this year unchanged although inflation is expected to slow down.