Economic Buzz: South Korea Raises Key Rate By 25Bps

26 May 2022 , 02:11 PM

The Bank of Korea lifted its key interest rate by a quarter point for the second straight meeting to tackle high inflation. The Monetary Policy Board decided to lift the Base Rate by 25 basis points to 1.75 percent from 1.50 percent. The economy is forecast to grow 2.7 percent this year, somewhat below the February forecast of 3.0 percent. The bank raised its inflation forecast for 2022 to 4.5 percent from 3.1 percent, citing rising raw material prices, deepening supply chain disruptions and the lifting of social distancing measures. In 2023, inflation is seen at 2.9 percent, instead of 2.0 percent projected earlier.Powered by Commodity Insights