Chairing a Government meeting after the US Federal Reserve (Fed) raised interest rates, Prime Minister Pham Minh Chinh stressed the need for macroeconomic stability, controlling inflation, and boosting economic recovery.

The meeting was held after the Fed raised its key rate by another 0.75 per cent on Wednesday night and other central banks also raised rates to cope with soaring inflation.

The Prime Minister said high inflation, currency depreciation and increasing competition, as well as policy changes, have a significant impact on Viet Nam’s economy, especially in terms of import-export, fuel prices and the supply of raw materials. Trade openness and external risk also pose risks to the country’s economy.

To deal with the challenges, the Prime Minister requested ministries and agencies to closely monitor global economic developments and propose solutions and long-term goals in a scientific and effective manner.

PM Chinh also stressed that the main task and priority now were to continue maintaining macroeconomic stability and controlling inflation while balancing supply and demand, boosting economic recovery and focusing on the prevention and control of COVID-19. In addition, relevant ministries and agencies were required to continue accelerating the country’s economic restructuring and renewing economic growth models. It was also important to enhance the application of science and technology in digital transformation and the green economy, while responding to climate change so as to create a foundation for sustainable development.

PM Chinh told ministries and agencies to work together in a flexible and effective manner on monetary-fiscal policies. He noted that they need to build appropriate and flexible plans for policies relating to interest rates that would help domestic businesses and fight dollarisation and goldification while ensuring credit growth in the right direction by focusing on production and offering priorities for the development of industrial parks and social housing projects.

It was also important to develop the domestic market and diversify export markets while stepping up the fight against smuggling and commercial fraud.

Ministries and agencies were also asked to continue developing the capital market, corporate bond market and real estate market in a safe, transparent, efficient and sustainable manner. —  VNS