Interest rate policies in selected countries

Abstract

In this article, the authors present the experience of interest rate policies in selected countries, including the
central banks of advanced economies, central banks in countries which have a significant trade relationship with
Vietnam, and central banks of countries with similar geographical or political conditions. The paper focuses on
analyzing the interest rate mechanism within the general framework of monetary policy, categorized based on
the objectives of the monetary policy as defined by the International Monetary Fund (IMF) in 2016. In particularly,
interest rate policies of central bank of Singapore, China, Thailand, Philippines, Korea, Sweden and the US under
different general frameworks of monetary policy based on exchange rate anchor, total money supply targeting,
inflation targeting or multi-targeting are examined. The experience of these central banks will be valuable lessons
for Vietnam to investigate and apply in enhancing the current monetary policy of State Bank of Vietnam.