SEOUL -South Korea’s central financial institution raised its key rate of interest by a quarter-percentage level as anticipated on Thursday, in a bid to include inflation and stop capital outflows because the U.S. Federal Reserve gears up for extra hikes.
The Financial institution of Korea raised its benchmark coverage price by 25 foundation factors to 2.5 p.c, resuming normal-sized increments after delivering an unprecedented 50-basis level hike in July to curb inflation now at an virtually 24-year excessive.
All however one among 36 analysts in a Reuters ballot anticipated the financial institution to go for the quarter-point hike, whereas one anticipated a half-point hike.
The financial institution additionally upgraded this yr’s inflation forecast to five.2 p.c from 4.5 p.c, which…
Carry on studying: South Korea delivers 25-bp price hike to fight inflation