Friday, March 11, 2011

Vietnam Central Bank Further Tightens Monetary Policy

The State Bank of Vietnam, having previously raised its main policy rate, lifted the rediscount rate to 12% from 7%, and increased the rate for recapitalizing banks to 12% from 11%. Vietnam reported annual inflation at a two-year high of 12.31% year on year in January, as prices rose 2.09% from January. The Vietnamese government has previously forecast economic growth of between 7.0% and 7.5% this year, compared to 6.78% in 2010, however with further tightening the actual result may be lower.


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