Business News Asia
The Bank of Korea (BOK) raised the key interest rate by 0.25% at its meeting today (November 24). This reflects the BOK’s efforts to curb inflation without affecting economic growth.
The BOK’s Monetary Policy Committee voted to raise the policy rate by 25 basis points to 3.25%, the highest level since July 2012, after raising rates by 0.50% at the last October meeting.
Today’s rate hike by the BOK is lower than other central banks in the region, such as the Reserve Bank of the Philippines and New Zealand, which continue to move aggressively. Previously, the U.S. Federal Reserve (Fed) had raised interest rates four times in a row by 0.75%.
The BOK meeting also lowered the 2023 growth forecast to 1.7% from the previous 2.1% and left the 2022 economic forecast at 2.6%.
Meanwhile, the BOK has lowered its inflation forecast for 2023 to 3.6% from 3.7% previously.