NA Economic Committee skeptical about monetary policy

HCMC – The National Assembly Economic Committee has expressed skepticism about the way the central bank has regulated the monetary market this year, saying it is problematic.

The committee has conducted an assessment of the Government report on socio-economic performance in 2023 and plans for 2024, the Government’s mid-term review of the 2021-2025 socio-economic plan, and the Government’s economic restructuring plan.

The assessment, delivered at the 27th session of the National Assembly (NA) Standing Committee in Hanoi today, October 16, pointed out that the excessive focus on inflation control resulted in interest rates soaring late last year and early this year.

The fact that the slow adjustment of the credit growth target in late 2022 and early 2023 was a monetary policy miscalculation, said the assessment.

Speaking at the session, the State Bank of Vietnam (SBV) governor defended what the central bank had done, saying the SBV had adhered to NA guidelines and had taken broader economic implications into account.

Nguyen Thi Hong, governor of the SBV, said the assessment by the NA Economic Committee did not look into a broader economic picture.

She argued that monetary policy was formulated based on a broader set of factors, including global and domestic inflation trends, interest rate adjustments, exchange rate stability, and banking system safety.

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