S. Korean central bank raises key interest rate to 2.5% - Breaking The News

S. Korean central bank raises key interest rate to 2.5%

25 August

1 min read

EPA-EFE/JEON HEON-KYUN

The Bank of Korea (BoK) announced on Thursday it has decided to raise its key interest rate by a quarter-percentage point to 2.5%, with its board estimating more hikes will be needed in the future to combat the ongoing rising trend in inflation.

Speaking about his expectations on inflation, Governor Rhee Chang-yong predicted the figure will remain between 5–6% until early next year. He also warned the prices might surge to their peak faster than experts estimated and linked that mostly to the decline in the value of crude oil.

Earlier, South Korean President Moon Jae-in warned the BoK should raise its key interest rate in order to respond to the newest growth in prices.

inflation interest rates interest rate decision bok

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