Categories: World

Korea: The central bank raised interest rates by 25 basis points

Korea: The central bank raised interest rates by 25 basis points

The Bank of Korea raised interest rates by 25 basis points, returning to its usual pace of tightening, as Governor Rhee Chang-yong made it clear that big rate hikes were no longer necessary in the fight against inflation.

The central bank raised the seven-day repo rate by 25 basis points to 2.5%, in line with economists’ expectations.

The central bank governor stressed that the bank’s stance was to continue with hikes of this size going forward, as he clarified his stance on the pace of tightening to calm prices and support the currency while keeping the economy on track. .

Rhee will travel to Jackson Hole for the meeting of central bankers in the coming days, with global attention focused on which path Fed Chairman Jerome Powell will take on interest rates during his widely watched keynote address. interest from investors, officials and economists.

Source: Capital