Sumary of S. Korea raises interest rate amid accelerating inflation:
- SEOUL – South Korea’s central bank raised its key interest rate to 1 percent on Thursday to curb accelerating inflation, bringing an end to an era of rates in the zero range.
- The decision to lift the benchmark rate by 0.25 percentage point, the second hike in three months, came as inflation continues and household debts surge.
- The central bank on Thursday unveiled the decision as it voiced concerns over inflationary pressure in the wake of the global economy’s recovery as vaccinations progress.
- “The board will continue to conduct monetary policy in order to sustain the recovery of economic growth and stabilize consumer price inflation at the target level” over the medium term, the bank said in a statement.
- South Korea’s consumer price index rose 3.2 percent in October from a year earlier, the fastest on-year gain since January 2012, a report by Yonhap News Agency said, citing government data.