Interest rates in Vietnam top region: Experts

At the international seminar on “monetary policy in coordination with other macroeconomic policies in evolutions of the world economic conditions” that took place on November 18, many international delegates have commented that Vietnam have regional leading high interest rate benchmark.
Mr Iskandar Simorangkir (Head of the Economic Research Bureau at Central Bank of Indonesia) said Indonesia tends to cut down interest rates strongly: “We have maintained the interest rate of Indonesian bank at 6.5%/year and it increased to 6.75%/year on February 2011 and then it was immobilized. In October 2011, we dropped the interest rate to 6.5%/year and a week ago it was reduced to 6%/year. The setting of interest rates should be made compatibly with the inflation target.”

Mr. Antonio B. Cintura (head of the Economic Research Division of Monetary Stability Department, the Central Bank of the Philippines) said that although Philippines’ economic growth is lower than that of Vietnam and Indonesia, Philippines’ inflation from beginning of 2011 until now has been controlled in the 3-5% target.

Many comments at the seminar said that curbing inflation and stabilizing macro-economy should not rely on only monetary policy, especially interest rate policy, but it requires the coordination with the other macroeconomic policies. – VIetbiz24

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial, Vietnam interest rates

Posted by VBN on Nov 22 2011. Filed under Banking-Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry