Fifteen commercial banks cut their listed deposit interest rates by 0.5 to 0.7 percentage points for terms of six months or longer on October 19, following a directive from the State Bank of Viet Nam (SBV).

As Viet Nam’s economy is highly open, with extensive and growing trade ties with the US, an interest rate hike by the US Federal Reserve (Fed) will have a significant impact on Viet Nam’s economy and financial sector ahead.

Rising demand for capital across the economy, combined with deposit mobilisation that has failed to keep pace, is placing mounting pressure on interest rate management.

The monetary policy will remain proactive and flexible, closely coordinated with an appropriately expansionary fiscal policy to prioritise inflation control while supporting sustainable growth.

Entering the fourth quarter, deposit interest rates at commercial banks have begun to increase after a prolonged period of stability.

In a video message on the occasion of the year- end, President of the European Central Bank (ECB) Christine Lagarde spread the belief that the bank will succeed in its efforts to reduce the current high inflation.

The leading economist from the International Monetary Fund (IMF) has recently said Canada is facing high inflation, weak growth and anxiety in financial markets, which have been also the challenges that are dragging down the global economic outlook.