South Korea delivers 25bp rate hike to combat inflation

Record ID: 1686221

  • Title: South Korea delivers 25bp rate hike to combat inflation
  • Date: 25th August 2022
  • Summary: SEOUL, SOUTH KOREA (AUGUST 25, 2022) (REUTERS) ***WARNING: CONTAINS FLASH PHOTOGRAPHY*** BANK OF KOREA GOVERNOR, RHEE CHANG-YONG, TAKING SEAT FOR NEWS CONFERENCE RHEE AND JOURNALISTS IN NEWS CONFERENCE ROOM JOURNALISTS SEATED (SOUNDBITE) (Korean) BANK OF KOREA GOVERNOR, RHEE CHANG-YONG, SAYING: “The Bank of Korea (BOK) decided to implement monetary policy by raising the base rate by 25 basis points from 2.25% to 2.50%.” NEWS CONFERENCE IN PROGRESS (SOUNDBITE) (Korean) BANK OF KOREA GOVERNOR, RHEE CHANG-YONG, SAYING: “The Bank of Korea (BOK) judges that it is desirable to implement monetary policy focusing on inflation for a while and continue the interest rate hike under the current inflation and growth prospect.” NEWS CONFERENCE IN PROGRESS
  • Embargoed: 8th September 2022 05:29
  • Keywords: Bank of Korea Rhee Chang-yong South Korea governor hike inflation newser rates
  • Location: SEOUL, SOUTH KOREA
  • City: SEOUL, SOUTH KOREA
  • Country: South Korea
  • Topics: Asia / Pacific,Currencies/Foreign Exchange Markets,Economic Events
  • Reuters ID: LVA001050625082022RP1
  • Aspect Ratio: 16:9
  • Story Text: South Korea's central bank raised its key interest rate by a quarter-percentage point as expected on Thursday (August 25), in a bid to contain inflation and prevent capital outflows as the U.S. Federal Reserve gears up for more hikes.
    The Bank of Korea raised its benchmark policy rate by 25 basis points to 2.50%, resuming normal-sized increments after delivering an unprecedented 50-basis point hike in July to curb inflation now at an almost 24-year high.
    “The Bank of Korea (BOK) judges that it is desirable to implement monetary policy focusing on inflation for a while and continue the interest rate hike under the current inflation and growth prospect,” said Governor Rhee Chang-young at a news conference in Seoul.
    The bank also upgraded this year's inflation forecast to 5.2% from 4.5%, which would be the fastest rate since 1998, and cut its projections for economic growth to 2.6% this year from 2.7% previously. It sees growth slowing to 2.1% in 2023.
    (Production: Dogyun Kim, Heejung Jung)
  • Copyright Holder: REUTERS
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