The Bank of Korea raised its base rate by 0.25 percentage point at the last interest rate decision meeting this year.
It is the first time in history that it has been raised 6 times in a row, but it seems that there are several intentions in not raising it to a larger width.
Reporter Lim Tae-woo reports.
The Bank of Korea raised the benchmark interest rate by 0.25 percentage points unanimously.
The first six consecutive hikes on record, and now the benchmark rate has risen to 3.25%, the highest level in a decade.
It seems that high inflation will continue, so it will respond by raising interest rates.
Consumer prices jumped 5.7% last month and rose again in three months, and even the expected inflation rate, which is the future price forecast, has not come down from the 4% level for the fifth month.
[Lee Chang-yong / Governor of the Bank of Korea: As the high inflation rate of 5% is expected to continue for the time being, it was judged that it is necessary to continue policy responses to stabilize prices
. no see.
The Bank of Korea lowered its forecast for next year's economic growth rate from 2.1% to 1.7% as a money drought came to the market and even consumption, which was the mainstay of the economy, weakened.
Under these circumstances, he decided that he could instigate a recession by raising interest rates significantly.
The US situation has also been added.
Minutes of the US central bank's meeting were released this month, revealing that more than half of the committee members were in favor of slowing the pace of rate hikes.
[Devon Drew/CEO of US asset management company: The US central bank is sending a signal of a moderate interest rate hike next year, and possibly even raising the possibility of halting or lowering interest rates, so long-term investment stocks such as Big Tech are becoming more advantageous.
] It is expected that interest rates will rise by up to 0.5 percentage point by saying that they are likely to raise interest rates one or two more next year.
(Video coverage: Kim Tae-hoon, video editing: Kim Byeong-jik)