The State Bank of Vietnam hiked the reverse repo rate another 100 basis points to 12.00% from 11.00% previously; the move follows a 200 basis point hike last week. Vietnam recorded inflation of 12.17% in January 2011, up from 11.75% in December, and above the Government's inflation target of 7.0%. The rate hike comes as the as Prime Minister Nguyen Tan Dung prepares to order tighter monetary and fiscal policies, and follows previous moves by the Bank to devalue the Vietnamese Dong by 8.5% and narrow the currency's trading band against the USD to +/-1% from +/-3%.
www.CentralBankNews.info
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