Wednesday, March 12, 2025 4:31:54 PM - Markets open
VN-INDEX 1,334.41 +1.87/+0.14%
HNX-INDEX 241.87 +1.29/+0.54%
UPCOM-INDEX 99.32 -0.08/-0.08%
Standard Chartered forecasts interest rates to return to pandemic levels
Vietnam News - 6/27/2023 2:14:06 PM
 (0 ratings. You must sign in to rate.)
Standard Chartered Bank forecasts Việt Nam’s second quarter GDP growth to have slowed to 1.5 per cent year-on-year (from 3.3 per cent in the first quarter), posing downside risks to its 6.5 per cent growth forecast for 2023. However, a rebound is expected in the second half of the year.
 
This information was released in the bank’s recent global research report titled “Việt Nam Macro: Slower second quarter GDP to justify more rate cuts”.
 
According to the international bank, June macro data will likely continue to improve slightly from May but remain relatively weak as a still-deep contraction in trade leads to slower manufacturing and economic activity.
 
Recent nationwide blackouts are likely to have weighed on economic activity. Exports are predicted to fall 5.2 per cent year-on-year in June, imports to fall 17 per cent, and industrial production growth to edge up to 1.2 per cent.
 
The trade surplus is likely to rise to US$4.1 billion from $2.2 billion in May. Inflation may ease further to 2.2 per cent year-on-year (from 2.4 per cent); the bank sees still-robust retail sales growth of 12.2 per cent year-on-year. Disbursed FDI declined 0.8 per cent year-on-year to $7.6 billion; pledged FDI fell 7.3 per cent to $10.9 billion.
 
Standard Chartered forecasts the State Bank of Việt Nam (SBV) will cut the benchmark refinancing rate by another 50 basis points (bps) to 4 per cent in the third quarter (the same level as during the pandemic years) and stay on hold until end-2025. The SBV cut the rate to 4.5 per cent from 5 per cent on June 16; that followed two earlier 50bps cuts, in March and May.
 
Tim Leelahaphan, economist for Thailand and Việt Nam, Standard Chartered Bank, said: “We think the SBV is currently focused more on growth amid easing price pressure. While it is reversing the monetary tightening implemented last year, lingering concerns about inflation and financial instability should prevent additional rate cuts beyond the 50bps we currently expect.” — VNS
 
Read original article here
Newer News
09:57 Corporate credit demand expected to keep rising this year
11/03 Central bank injected more than VNĐ5 trillion to the market
11/03 Banks promote dividend payments in shares to raise charter capital
07/03 Vietnam plans pilot cryptocurrency exchange
06/03 Authorities recover tax and issue fines of nearly $55 million for e-commerce violations in 2024
06/03 Gov't issues decree on temporary exit ban for tax evaders
06/03 Credit cap regulation will cause problems for banks wanting to fund larger projects
05/03 Need for structural separation of banking investment in bond market: experts
04/03 Ministry works on application of international financial reporting standards
03/03 Authorities promotes developing legal framework for digital assets
Older News
20/06 Credit growth expected to improve in H2 2023
14/06 ABBANK share issuance to pay dividends hikes capital to $444m
13/06 Vietcombank's market value hits record high
13/06 HDB: Moody's confirms HDBank's B1 ratings on low NPLs, high operational efficiency
03/06 NA deputies call for extended VAT cuts
23/05 Việt Nam’s banking sector liquidity crunch eases
22/05 Gold remains a potential investment channel
19/05 State-owned banks continue cutting deposit interest rates
13/05 Vietnamese đồng one of most stable currencies in Asia: Experts
09/05 Bank deposit interest rates keep falling
 
Newsletter Signup
Top Stories
Market cautious as liquidity drops significantly
VCCI recommends mineral mining rights be granted through auction and bidding
Central bank works to raise interbank rates and ease forex market
Inflation a concern following salary increases
National Council for Sustainable Development established
Market Update
Last updated at 3:10:02 PM
VN-INDEX 1,334.41 +1.87/+0.14%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.