DBS Group Research economist Chua Han Teng anticipates that the State Bank of Vietnam will maintain its refinancing rate at 4.50% until the end of 2026. This outlook is based on a combination of factors including a stable Vietnamese Dong against the US Dollar, easing headline inflation, and robust GDP growth, according to FX Street.
The stable currency and controlled inflation create a favorable environment for the central bank to keep monetary policy steady, supporting economic momentum without adding pressure on borrowing costs. The strong economic growth further reduces the need for rate adjustments in the near term.
For Japanese investors and traders, Vietnam’s steady monetary stance may offer a degree of predictability amid regional market fluctuations, potentially influencing capital flows and FX strategies involving the Vietnamese Dong and broader Southeast Asian assets.