S.Korea raises interest rate to 1.75 pct
May 26, 2022
Seoul [South Korea], May 26: South Korea's central bank on Thursday raised its policy rate by 25 basis points, delivering the first back-to-back rate hikes in almost 15 years to curb runaway inflation.
Bank of Korea (BOK) Governor Rhee Chang-yong and other monetary policymakers decided to lift the benchmark seven-day repurchase rate by a quarter percentage point to 1.75 percent.
The BOK set off its tightening monetary policy since last summer, increasing the key rate by 25 basis points to 0.75 percent in August and 1.00 percent in November last year, and to 1.25 percent in January and 1.50 percent in April this year.
The BOK's back-to-back rate hikes marked the first time in more than 14 and a half years since the bank implemented it in July and August 2007.
It was in line with market expectations. According to a Korea Financial Investment Association survey of 100 fixed-income experts, 94 percent predicted the rate increase this month.
Source: Xinhua
