Foreign media: The Korean Central Bank raised interest rates four times in a row for the first time.

Zhongxin Jingwei, August 25th. According to the Yonhap News Agency on the 25th, the Central Bank's Financial and Monetary Committee's meeting on the 25th decided to increase the benchmark interest rate from the current 2.25%of 25 basis points to 2.5%. This is the first time in the history of South Korea's central bank four consecutive interest rate hikes.

The report pointed out that at this time, the benchmark interest rate in South Korea has been raised seven times in just one year, of which six of them have increased to 25 basis points, one at a time is 50 basis points, and a total of 200 basis points are raised.

The report said that the analysis believes that the Bank of South Korea believes that the rise in prices has not yet ushered in an inflection point, so it has maintained a rate hike tone. When the Governor of the Central Bank of Korea, Li Changzheng, said on the 1st of the Congress of Planning and Finance on the 1st of this month that if the resident consumer price index (CPI) increased by more than 6%, it would pay a greater price, from a macro perspective, until the price increase stabilized, South Korea The central bank has to maintain the rate of interest rate hikes. Yonhap News Agency reported on the 25th that the Korean Central Bank raised the 2022 CPI increase to 5.2%.

The report believes that the concerns of South Korea and the United States are also one of the factors considered by the Central Bank of Korea. The Federal Reserve raised 75 basis points for two consecutive months on the 27th of last month, resulting in the US benchmark interest rate (2.25 ~ 2.5%) higher than South Korea interest rates (2.25%). The Bank of South Korea believes that it is necessary to reduce the difference in interest rates of South Korea and the United States, maximize the risk of risks such as foreign investment funds, depreciation of Korean won, and rising exchange rate fluctuations.

On August 23, the exchange rate of the Korean won to the US dollar was closed at 1345.5 won, which was 5.7 won lower than the closing price of the previous day, a new low in the year. Earlier, the South Korean foreign exchange department has begun to orally interfere with the risk of exchange rates in the exchange market, but most of the views are difficult to work. According to the Yonhap News Agency, the Bank of Korea said that the appreciation of the US dollar in the foreign exchange market is the general trend, and the role of the Korean foreign exchange department can play a limited role. (Zhongxin Jingwei APP)

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