The Bank of Korea raised the base rate by 0.25 percentage point again.
This is the first time that the benchmark interest rate has risen seven times in a row.
Considering that prices are still high and the US continues to raise interest rates, the burden of debt for those who borrow money from banks is expected to increase.
Reporter Kim Jung-woo will deliver the first news.
The benchmark interest rate in Korea has now risen to 3.50%.
This is the highest level since November 2008 and the first ever rate hike for the seventh consecutive time.
Considering the current slowdown in the economy, two Monetary Policy Committee members expressed their opinion that the base rate should not be raised, but in the end, the focus was on high inflation and the continuing rate hike in the US.
[Lee Chang-yong/President of the Bank of Korea: I said that inflation is at the 5% level in January and February, and in that respect, we have to maintain monetary policy centered on inflation for the time being.
] has been reduced by 1 percentage point, reducing concerns about the outflow of foreign investment funds.
However, the unprecedented increase in the base interest rate by 3 percentage points in a year and a half has increased the debt burden.
As a result, it is estimated that households will shoulder an interest burden of 40 trillion won and companies will bear an interest burden of about 24 trillion won.
[Mr. A/Employee: The interest rate on the loan, which was initially 2%, is now 6%, so I paid 700,000 won for interest only, but now it costs about 1.7 million won.
So it's a lot of burden because it's increased by more than 1 million won.]
There are still concerns about a slowdown in the economy due to high interest rates and the deteriorating global economy.
The Bank of Korea announced that there is a possibility that the Korean economy may have already experienced negative growth in the fourth quarter of last year.
[Lee Chang-yong / Bank of Korea Governor: (Last year) the fourth quarter economic indicators came out a little badly.
The possibility of negative growth in the fourth quarter has become very high.]
This year's economic growth rate, which was initially expected to be 1.7%, is also highly likely to be lower.
(Video editing: Lee Sang-min, VJ: Kim Sang-hyeok)