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DBS Group Research economist Chua Han Teng forecasts that Vietnam's State Bank will maintain its refinancing rate at 4.50% until the end of 2026. The analysis highlights Vietnam's stable GDP growth, easing headline inflation, and a resilient Vietnamese Dong (VND) against the US Dollar. These factors suggest a cautious monetary policy stance as inflationary pressures diminish. For markets, this stability could attract foreign investment into Vietnamese assets, particularly in equities and local debt. Traders should monitor upcoming inflation data and central bank statements for potential rate adjustments. The VND/USD pair remains a key focus for forex traders, with the current policy environment likely to support its stability. Future economic indicators, such as trade balances and manufacturing activity, will be critical in shaping Vietnam's monetary trajectory.
