Yonhap News Agency, Seoul, November 24th. The Financial and Monetary Committee of the Bank of Korea (central bank) met on the morning of the 24th and decided to raise the benchmark interest rate by 25 basis points to 3.25%.
As a result, the central bank raised the benchmark interest rate 9 times in 1 year and 3 months, including 7 times by 25 basis points and 2 times by 50 basis points, for a total of 275 basis points.
It is reported that the central bank raised interest rates again this time mainly because the upward trend in prices has not weakened significantly. South Korea's consumer price index (109.21) in October rose by 5.7% year-on-year, and the increase expanded again after three months. The expected inflation rate, which predicts price increases in the coming year, was 4.2% in November, a slight decrease from the previous month (4.3%), but remained above 4% for five consecutive months.
In addition, after the Federal Reserve (Fed) decided to raise interest rates by 75 basis points on the 2nd local time, the difference between the benchmark interest rates in South Korea (3%) and the United States (3.75%~4%) also became the main background for this rate hike. (Finish)
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