Market Highlight 14.10.2026

According to New York Federal Reserve President John Williams, one more FED rate hike this year may be appropriate, although he left open the possibility of further increases in 2027. On the inflation outlook, Williams said the U.S economy has clearly been affected by tariffs, energy prices, and now Artificial Intelligence, but he does not see any other new factors adding further pressure to prices. In fact, underlying inflation indicators have gradually eased. The U.S Central Bank raised interest rates by 0,25% at its September meeting, a move Williams said was driven by persistently high energy prices and the surge in demand associated with the build-out of artificial intelligence (AI) infrastructure.

In its latest World Economic Outlook, the IMF forecast global growth at 3,1% this year. The global economy has demonstrated considerable resilience in the face of the largest energy shock in decades. However, if borrowing costs and inflation are not brought under control, global growth could weaken while inflation could rise significantly further. Interest rates have increased sharply across many advanced economies, public debt has also reached record highs, and fiscal buffers have been depleted following a series of crises. Prolonged disruptions to oil and gas markets and higher energy costs, which erode household purchasing power and businesses’ investment capacity, could reduce global GDP growth by 0,2% and 0,5% in 2026 and 2027, respectively.

Interbank USD/VND remained above 25.900 during yesterday’s trading session and closed the day at 25.915. The SBV raised the central rate sharply by another VND 12 on Tuesday, lifting the effective daily ceiling to 26.914. Markets will closely watch U.S September inflation data, with CPI and PPI due tonight and tomorrow night, respectively.

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