SBV monetary policy management challenging on CPI: official

Vietnam’s State Bank of Vietnam (SBV) is grappling with the challenge of managing monetary policy amid rising inflationary pressures, according to officials. Deputy Governor Pham Thanh Ha emphasized that 2026 is a pivotal year as the country implements its 2026–2030 socio-economic development plan, with a GDP growth target of at least 10% and a CPI target of around 4.5%. However, inflation has already exceeded expectations, with CPI rising more than 5% year-on-year in April 2026.

The SBV faces the dual challenge of supporting economic growth while maintaining macroeconomic stability and controlling inflation. Pham Chi Quang, head of the SBV’s monetary policy department, noted that persistent inflation are complicating policy decisions. The International Monetary Fund (IMF) forecasts inflation rate could reach 4.9%, surpassing the National Assembly’s target.

Domestically, the central bank is also monitoring return to trade deficits, which could further strain the foreign exchange market and inflation control efforts. Experts caution that aggressive monetary easing could exacerbate inflation and weaken the Vietnamese dong. As a result, policymakers are emphasizing careful credit allocation and coordination between monetary and fiscal policies to ensure sustainable growth.