Vietnamese inflation accelerated for an 11th month in July after the central bank cut a key interest rate even as the nation faces the fastest price gains in Asia.
Consumer prices rose 22.16 percent from a year earlier, data released by the General Statistic Office (GSO) showed on July 24.
It may peak as high as 23 percent in August before slowing to 18 percent by year-end, said Prakriti Sofat, a Singapore-based economist in Barclays Capital.
Prime Minister Nguyen Tan Dung in February cut the credit-growth target and ordered a tighter monetary policy to try to tame inflation, revive confidence in the economy and prevent another credit-rating downgrade.
The government’s strong commitment to sustaining the stabilisation effort is essential to re-establishing confidence in the VND and restoring macroeconomic stability more generally, said Benedict Bingham, the International Monetary Fund’s senior resident representative in Vietnam.
However, a tight economic policy would threaten the Vietnamese government’s full-year target of 6-percent GDP growth rate, said Moody’s Investors Service. – Bloomberg
VBN on Jul 25 2011
No comments:
Post a Comment