S. Korea announces surprise 0.5% point rate hike to fight inflation

Economy

South Korea's central bank on Wednesday raised its benchmark interest rate by an unprecedented half percentage point amid deepening worries over inflation prompted by higher energy and food prices. The Bank of Korea decided at a Monetary Policy Board meeting to increase the interest rate from 1.75 percent to 2.25 percent, following smaller rate rises at the last two meetings in April and May. It marked the first time for the bank to hike rates three times in a row. "The Board judges that a pre-emptive policy response to prevent the entrenchment of high inflation is of greater importance for so...

Kyodo News

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