The central bank of South Korea has decided to raise the policy interest rate by 0.25% in light of the economic recovery trend and rising prices.
This will be the rate hike following August.
The Bank of Korea, the central bank of South Korea, held a meeting to decide monetary policy on the 25th and decided to raise the policy interest rate by 0.25% to 1% per year.
It is the first time in one year and eight months that the policy interest rate will be in the 1% range due to the interest rate hike following August.
In South Korea, while the economy is on a recovery trend, the rate of increase in consumer prices last month reached 3.2%, the highest in nine years, and the rise in real estate prices has brought household debt to a record high. I am.
The Bank of Korea said that the inflation rate is expected to continue to exceed the target of 2% for a while, and Governor Lee Ju-yeol said at a press conference after the meeting, "We raised the policy interest rate to 1%, but prices We believe that interest rates are still at an accommodative level in light of the trends in the market. "
"Depending on economic conditions, it is not necessary to rule out rate hikes in the first quarter of next year," he said, suggesting the possibility of additional rate hikes.
With rising prices becoming a major issue for the global economy, central banks in each country are moving to reduce monetary easing and raise interest rates.