Monetary policy management to growth, restrain inflation
06/08/2010 - 147 Lượt xem
The domestic monetary market got hotter in the end of last year with increasing competition between commercial banks. This trend is projected to continue this year, requiring management of monetary policy to push up economic growth and restrain inflation from further rising.
This year is expected to witness a lot of complicated changes not only in the home but also foreign markets. Prices of gold and other resources in the world market are on the rise. Exchange rates are unstable. Interest rates of USD and EUR will further raise. Political unrest and disasters in many parts of the world will also have large impacts on the monetary market.
Prices of many necessary products like coal, electricity, cement, etc in the domestic market will also increase in stead of being prevented from going up last year. Food prices will be changeable, also. Such changes will affect the CPI as well as inflation rate.
In this context, to keep inflation rate below the level set by the National Assembly, the central bank needs to continue with high compulsory reserve rate, basic interest rate, recapitalization rate, etc. Meanwhile exchange rates should be more flexible. To ensure economic growth rate, debt growth rate should be at least equal with last year’s level.
Commercial banks, especially State-owned ones, should reduce bad debt rate, develop more services, modernize technologies, improve managerial skills and human resource; continue equitisation; increase chartered capital at joint stock commercial banks. This year, bonds issued by domestic banks will lure more investors. Monetary policy should be coordinated closely with financial policy, bringing the capital market to a higher level.
Source: Thời báo Kinh tế Việt Nam, 18/01/2006
