VOT Research Desk
Despite high inflation and an aggressive US Federal Reserve, the South Korean central bank increased the rate by 25 basis points, as predicted, to 3.25% amid signs of weakening domestic development, according to a Reuters poll.
According to the most recent data, South Korea’s economy is rapidly losing speed as rising living expenses reduce household income and restrain demand, placing pressure on the BoK to strike a balance between inflation and growth.
After a half-point increase in October, according to Reuters, rates are currently at their highest levels since July 2012. In a Reuters poll, all but one of 30 analysts predicted that the central bank would decide to choose a quarter-point hike, and one predicted another half-point increase.
Since August, the Bank of Korea has increased the policy rate a total of 275 basis points.
