Business

Vietnam raises another interest rate in inflation fight

Vietnam dong notes at a cash point
Image caption Vietnam's weaker currency has amplified many of the country's inflationary pressures

Vietnam has raised another of its main interest rates as it looks to step up its fight against inflation.

The State Bank of Vietnam pushed its reverse repo rate to 12% from 11%.

The move comes less than a week after Vietnam increased its main interest rate by two percentage points to 11% from 9%.

It is hoped that the interest rate increases will help strengthen Vietnam's currency, the dong, and slow inflation.

The rate of inflation was at more than 12% in January.

ANZ Banking Group said in a note to investors that the rate increase showed that the authorities "are serious about fighting inflation".

Earlier this month, Vietnam devalued its currency by 8.5%.

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