Another South Korean Central Bank Rate Hike and More to Come
August 25, 2022
The Bank of Korea‘s policy interest rate was raised by 25 basis points to 2.5%. This was the seventh normalizing hike over the past year from a starting rate level of 0.50%. All of the moves except the prior one in July of 50 basis points have been by a quarter of a percentage point. South Korean CPI inflation is currently at 6.3%, most since November 1998. A released statement explains,
The Board sees continued rate hikes as warranted, as inflation is expected to remain high, substantially above the target level, despite the increase in economic downside risks and underlying high uncertainties surrounding domestic and external conditions.
Copyright 2022, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Korea
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