Despite rising inflation pressure, the State Bank of Viet Nam (SBV) is likely to maintain a loose monetary policy at least for the next 3-6 months, analysts forecast.
Under a newly released report, analysts from VNDirect Securities Company provided some reasons for their forecast.
Firstly, they said, although inflationary pressure is expected to increase in the coming months, the average consumer price index in the first half of 2022 is forecast to rise by 2.5 per cent year-on-year, still much lower than the cap of 4 per cent targeted by the Government for 2022.
Second, domestic demand is still relatively weak and has not fully recovered to a normal level as before the pandemic.
Finally, the SBV is still prioritising the goal of maintaining low lending rates to support businesses and the economy to recover after the pandemic.
The analysts forecast credit growth will increase by 14 per cent in 2022, with priority on production and service sectors such as industry, import and export, agriculture, forestry and fisheries. In addition, the SBV will strictly control credit flows into high-risk areas such as real estate, securities and BOT (Build-Operate-Transfer) projects. - VNN-