KONTAN.CO.ID - SEOUL. South Korea's central bank raised its policy rate on Thursday, as widely expected, as concerns about rising household debt and inflation offset uncertainty around a resurgence in COVID-19 cases. The Bank of Korea's monetary policy board lifted borrowing costs by 25 basis points to 1.00% - a move expected by 29 of 30 analysts in a Reuters poll. One analyst saw the bank raising interest rates by 50 basis points to 1.25%. South Korea has been at the forefront of global stimulus withdrawal as central banks start to trim pandemic-era stimulus to contain quickening inflation and growing financial imbalances.
South Korea's central bank raises rates as price pressures mount
KONTAN.CO.ID - SEOUL. South Korea's central bank raised its policy rate on Thursday, as widely expected, as concerns about rising household debt and inflation offset uncertainty around a resurgence in COVID-19 cases. The Bank of Korea's monetary policy board lifted borrowing costs by 25 basis points to 1.00% - a move expected by 29 of 30 analysts in a Reuters poll. One analyst saw the bank raising interest rates by 50 basis points to 1.25%. South Korea has been at the forefront of global stimulus withdrawal as central banks start to trim pandemic-era stimulus to contain quickening inflation and growing financial imbalances.