Vietnam central bank aims to keep inflation at 4.5% next year

VIETNAM’S central bank said on Tuesday it will manage monetary policy in a flexible way to keep inflation at 4.5 per cent next year. The State Bank of Vietnam said it will aim to “stabilise the monetary and foreign exchange markets to ensure the safety of the banking system.”

Lending by Vietnamese banks rose 12.87 per cent as of Dec. 21 from the end of last year, the State Bank of Vietnam (SBV) said in a statement. The SBV was due to hold a news conference on Tuesday morning on the economy and the 2023 outlook. Vietnam has one of the fastest growing economies in Asia, backed by strong manufacturing and robust exports. Its economic expansion also relies heavily on strong credit growth.

The central bank early this month raised its 14 per cent cap on credit growth for the banking system this year by 1.5-2.0 percentage points, following a credit crunch in property and its financial markets. Vietnam’s gross domestic product growth is expected to be 8 per cent this year, while inflation is forecast to be kept below the 4 per cent official target. REUTERS