2014 inflation expected to be below 4%
(VOVworld) –The National Financial Supervisory Commission has issued a macroeconomic report which forecasts inflation between 3 and 4% for the year. According to the report for September and year to date, the inflation rate is on a downward trend since last year and stands at 3.12%.
The decline has created downward pressure on the prime interest rate. According to the Commission, demand has picked up but is not yet strong enough to restore the economy and ease difficulties for businesses.
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| Demand is not yet strong enough to restore the economy. (Photo: VNA) |
The report urged the State Bank of Vietnam to provide low-interest capital to commercial banks to enable lower lending interest rates and provide state financial resources to the Vietnam Asset Management Company to buy bad debts. The central bank was asked to accelerate the disbursement of funds from the state budget and government bonds and step up administrative reforms, which will help cut business costs, boost equitization, and restructure state-owned enterprises.