In the report released by Barclays Capital, the author Prakriti Sofat forecasted
Vietnam’s inflation would hit the peak at 21-22 percent by the middle of this year.
“Suppose the prices of basic goods in the world continue to increase and Vietnamese government’s decision on increasing the basic salary takes effect, we predict the inflation would be at 21-22 percent by the middle of 2011. We believe the price increasing pressure would be lessened by the end of 2011 thanks to the actual impacts of tightening credit policy” Barclays Capital said.
Barclays Capital also raised the forecast on
Vietnam’s inflation in 2011 to 17.5 percent from 15 percent as forecasted previously.
With the evolution of inflation, Barclays Capital expected State Bank of Vietnam (SBV) would raise the repo interest rate (on the open market operations-OMO) by more 100 percent points (1 percent) from the current of 13 percent to 14 percent in May...
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