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24 March 2017 14:01 (South Africa)

Vietnam raises interest rates as others cut

vietnam money

In an effort to tackle the effects of the world economic malaise, Vietnam has raised its benchmark interest rate from 7% to 8% and reset its official exchange rate, devaluing its dong currency by more than 5%. The hike puts Vietnam among only a few countries that have raised the cost of borrowing in 2009 as the global economy begins to settle. The country had not been expected to raise rates until early 2010, but analysts have widely welcomed the move as a sign that officials are addressing mounting inflation pressures and rapid credit growth. This mirrors the situation in many other developing Asian countries, notably China, where massive government stimulus and sharp interest-rate cuts caused property prices to shoot up and stock markets to escalate, simultaneously raising the cost of living. Read more: The New York Times

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