Central bank revises up credit growth limit
HCMC – The State Bank of Vietnam (SBV) decided last night (December 5) to increase the credit growth limit
Monetary policy is subject to change depending on specific market conditions, according to a recent directive of the SBV, the country’s central bank.
The central bank will prioritize harmonizing monetary and fiscal policies, with inflation to be harnessed at around 4.5%.
The SBV intends to funnel more money into the industrial and service sectors seen as key economic drivers, and restrict lending to high-risk areas.
In December last year, the central bank upped its 14% credit growth limit by 1.5-2.0 percentage points in response to a severe credit crunch in the local real estate and banking sectors.