#The SBV must also balance inflation control with the need to support economic growth. Very high interest rates can stifle borrowing and investment, potentially slowing down economic activity. Therefore, the SBV carefully considers the overall economic conditions when setting interest rates, aiming for a level that manages inflation without hindering growth. This balance can influence the market's perception of Vietnam's economic health and, consequently, the VND's strength.
#The SBV must also balance inflation control with the need to support economic growth. Very high interest rates can stifle borrowing and investment, potentially slowing down economic activity. Therefore, the SBV carefully considers the overall economic conditions when setting interest rates, aiming for a level that manages inflation without hindering growth. This balance can influence the market's perception of Vietnam's economic health and, consequently, the VND's strength.