Can the prices of pork destabilize the monetary policy formulated by the central bank in Vietnam?

After two big purchases of foreign currencies in the first four months of the year and from July until now, Vietnam’s forex reserves reached the highest level, now at $70 billion.

Experts, citing figures and reports, affirmed that banks have not stopped funding real estate projects.

Analysts believe that the State Bank of Vietnam (SBV) should follow the move of other central banks to cut interest rates. This would help ease the burden on businesses.

VND9.103 trillion worth of listed corporate bonds were issued in the first quarter of 2019. Vietnamese enterprises are issuing bonds instead of borrowing money from banks when seeking long-term capital.

The State Bank of Vietnam (SBV) will hold its benchmark refinancing and discount rates at 6.25% and 4.25%, respectively, in addition to maintaining its 14% credit growth target for the remainder of 2019, experts forecast.

Some central banks have loosened monetary policy to promote economic growth.

The State Bank of Vietnam (SBV) has requested commercial banks to control disbursement in risky business fields such as real estate, consumer credit and securities investments.

VietNamNet Bridge - In the context of pressure on inflation and exchange rate, macroeconomic stabilization must be the top priority, experts say.

Fitch Ratings has advised Vietnam to gradually tighten monetary policies to stabilize the macro economy and have an opportunity for investment level upgrading.

VietNamNet Bridge - Current monetary policies and the strong rise of the stock market have prompted people to pour money into production and investments.

VietNamNet Bridge - Easing the lending interest rate further by 0.5 percent and obtaining a high credit growth rate of 21-22 percent as instructed by the PM will not be an easy task.

 The Federal Reserve held interest rates steady on Wednesday in its first meeting since President Donald Trump took office, but painted a relatively upbeat picture of the U.S. economy

 With monetary policy still modestly accommodative, the U.S. central bank should continue to raise interest rates slowly or risk harm to the recovery the Fed has sought to nurture, Federal Reserve Chair Janet Yellen said on Thursday.

VietNamNet Bridge - In the context of global oversupply and unstable oil prices, oil & gas exports must not be seen as the lifebuoy for the Vietnamese economy.

 The Federal Reserve should be cautious in considering an interest rate increase due to lingering risks to the U.S. economy, one of the central bank's most influential policymakers said on Monday,

The moves taken by the State Bank of Vietnam (SBV) recently, since the day the new Governor took office, show that obtaining high GDP growth rate is the top priority for the bank when regulating monetary policy.

VietNamNet Bridge – Bui Duc Thu, a member of the National Assembly’s Committee for Financial and Budgetary Affairs, told the Cong Thuong newspaper that in 2016, Viet Nam would try to keep the inflation rate under 5 per cent

 VietNamNet Bridge – The Vietnamese government’s flexible monetary policy contributed greatly to Vietnam’s macro-economic stability and socio-economic development.

Foreign investors sold shares in large quantities in early December in anticipation of the expected US Federal Reserve's raising the target interest rate by 0.25 percent.