The central bank of Vietnam (SBV) today announced that its key policy rate will stay unchanged at 8.0% during April. This is a dangerous strategy. Inflation has already hit 9.5% y/y and will probably accelerate further. By moving too slowly, the SBV risks undoing all the good work that has been done so far to contain inflation and improve the balance of payments. Foreign investor sentiment will continue to sour, and the currency would crash again, if policy rates stay at 8.0% for too long.