Economic news review on November 7

The central exchange rate increased by 25 VND, the VN-Index decreased slightly by 1.53 points, or the price of gasoline and oil (except mazut) increased by 350-770 VND per liter, kg... are some notable economic news on November 7.

Economic news review

Domestic news

Foreign exchange market, session 07/11, State Bank listed the central exchange rate at 24,283 VND/USD, a sharp increase of 25 VND compared to the previous session.

The State Bank of Vietnam's transaction office continues to maintain the listed USD buying and selling prices at 23,400 VND/USD and 25,450 VND/USD, respectively.

On the interbank market, the dollar-dong exchange rate closed at 25,360 VND/USD, down 25 VND compared to the session on November 6.

The dollar-dong exchange rate on the free market increased sharply by 145 VND in both buying and selling directions, trading at 25,745 VND/USD and 25,845 VND/USD.

Interbank money market, November 7, the average interbank VND interest rate remained unchanged for the overnight term while increasing by 0.04 - 0.11 percentage points for the remaining terms of 1 month or less compared to the previous session; specifically: overnight 4.77%; 1 week 4.88%; 2 weeks 5.02 and 1 month 5.08%. The average interbank USD interest rate decreased by 0.02 - 0.03 percentage points for all terms, trading at: overnight 4.82%; 1 week 4.86%; 2 weeks 4.88%, 1 month 4.90%.

Government bond yields in the secondary market increased across all maturities; closing at: 3-year 1.89%; 5-year 1.93%; 7-year 2.22%; 10-year 2.73%; 15-year 2.96%.

In open market operations, on the mortgage channel, the State Bank bids VND15,000 billion, with a term of 07 days, and an interest rate of 4.0%. VND15,000 billion was won. VND3,000 billion matured on the mortgage channel. The State Bank bids for SBV bills with a term of 28 days, with an interest rate auction. VND900 billion was won, with an interest rate of 3.90%. VND600 billion matured.

Thus, the State Bank of Vietnam pumped a net VND11,700 billion into the market through the open market channel yesterday. There were VND82,999.91 billion circulating on the mortgage channel, and VND77,100 billion in treasury bills circulating on the market.

The stock market fluctuated yesterday, with key sectors such as banking, securities and real estate performing poorly. At the end of the session, VN-Index fell slightly by 1.53 points (-0.12%) to 1,259.75 points; HNX-Index lost 0.27 points (-0.12%) to 227.49 points; UPCoM-Index fell 0.39 points (-0.42%) to 92.32 points. Market liquidity was low with a trading value of nearly VND13,500 billion. Foreign investors continued to net sell more than VND385 billion on all three exchanges.

Gasoline and oil prices (except fuel oil) increased by 350-770 VND per liter and kilogram from yesterday, November 7, after adjustments by the Ministry of Industry and Trade and the Ministry of Finance. Specifically, the price of RON 95-III gasoline increased by 350 VND per liter, the selling price is not higher than 20,850 VND per liter; E5 RON 92 gasoline is at 19,740 VND per liter, an increase of 340 VND; diesel increased by 770 VND per liter, to 18,910 VND per liter; kerosene increased by 460 VND per liter to 19,290 VND per liter, while fuel oil decreased by 70 VND per kilogram to 16,390 VND per kilogram.

International News

The US Federal Reserve (Fed) has cut its policy interest rate for the second time in 2024. In the 2-day meeting on November 6-7, the Federal Open Market Committee (FOMC, part of the Fed) said that recent indicators show that the US economy continues to expand solidly. The labor market has generally loosened and the unemployment rate has increased but remains low. Inflation has made progress towards the Fed's 2.0% target but remains high.

The FOMC assessed that risks to inflation and the labor market are roughly balanced, the economic outlook is uncertain, and the Fed will focus on its dual mandate of achieving full employment and helping inflation return to its 2 percent objective on a sustained basis.

To support these objectives, the FOMC decided to lower the target range for the federal funds rate by 25 basis points, from 4.75% - 5.0% to 4.50% - 4.75%. The FOMC will continue to monitor future economic data to determine the appropriate stance of monetary policy.

Regarding the US labor market, the number of initial jobless claims for the week ending November 1 was 221 thousand, up slightly from 218 thousand the previous week and almost in line with the forecast of 223 thousand. The 4-week average was 227.25 thousand, down 9.75 thousand from the previous 4-week average.

The Bank of England (BOE) slightly lowered its policy interest rate at its November meeting. At its meeting yesterday, November 7, the BOE said that the consumer price index (CPI) fell to 1.7% year-on-year in September, but could return to 2.5% by the end of the year due to the return of energy prices.

However, services inflation eased to 4.9% year-on-year in September from above 5% in the previous months. The BOE also forecast a contraction in GDP growth in the final quarter of the year and a further tightening of the labor market. The BOE is determined to achieve its 2.0% inflation target in a timely and sustained manner.

At this meeting, the BOE Monetary Policy Committee (MPC) passed a decision to cut the policy interest rate by 25 basis points with 8 votes in favor and 1 vote not to cut the interest rate, bringing the policy interest rate from 5.0% to 4.75%.

After the meeting, BOE Governor Andrew Bailey stressed that the policy rate cannot be cut too quickly or too much because inflation is always close to the target. However, he also mentioned that interest rates could continue to decrease gradually if the economy develops as expected by the BOE.

Source: https://thoibaonganhang.vn/diem-lai-thong-tin-kinh-te-ngay-711-157569-157569.html