1. What tool does the central bank typically employ to curb high inflation?
Increasing interest rates makes borrowing more expensive, thereby reducing spending and investment in the economy, which helps to cool down inflation. |
2. Which type of asset is typically considered a ‘safe haven’ during economic uncertainty and rising inflation?
Historically, gold has maintained or increased in value during periods of inflation and economic turmoil, making it a trusted store of value for many investors. |
3. What is the most common definition of the term ‘technical recession’?
This is the definition most widely accepted by economists and market analysts to determine a technical recession. A technical recession is used when GDP falls for two consecutive quarters, but other indicators remain stable or positive, such as low unemployment rates, growing personal consumer spending, and a robust labor market. |
– 20:28 03/08/2025
The Alluring Appeal of Bank Deposits: What’s Keeping Funds from Venturing Out?
Despite the low savings interest rates, banks continue to attract massive cash inflows. This phenomenon can be attributed to a combination of factors, including a cautious mindset, deep-rooted trust in the banking system, and traditional savings habits, which together create a strong pull for idle funds to remain within the confines of these financial institutions.
“Vietnam’s Central Bank Meets With Commercial Banks to Discuss Interest Rates”
The State Bank of Vietnam (SBV) has instructed credit institutions to follow the directives of the Government, the Prime Minister, and the SBV itself, with a key focus on maintaining stability in deposit interest rates. Institutions are also encouraged to further reduce operating expenses, embrace digital transformation, and be prepared to share a portion of their profits to lower lending rates.
The Art of Monetary Manipulation: Central Bank’s Directive to Stabilize Deposit Rates and Reduce Lending Rates
On August 4, the State Bank of Vietnam (SBV) hosted a conference in Hanoi to discuss measures to stabilize deposit interest rates and reduce lending rates. The conference was chaired by SBV Deputy Governor Pham Thanh Ha.
The Greenback Surges.
“During the week of July 28 to August 1, 2025, the US dollar surged as the Federal Reserve maintained interest rates in its July meeting, coupled with positive economic data from the US. The Fed’s decision to stand pat on rates, for now, comes amid a backdrop of encouraging economic indicators, signaling a resilient American economy.”
Gold Slides After Powell Says No Rush to Cut Rates
The Fed’s meeting spurred a rise in Treasury yields and the dollar, exerting downward pressure on precious metals.
