The Bank of Korea raised the benchmark interest rate to 2.25%

Author:Xinhuanet Time:2022.07.13

Xinhua News Agency, July 13th (Reporter Lu Rui Sun Yiran) South Korea's Central Bank of Korea announced on the 13th that the benchmark interest rate raised 50 basis points from 1.75%to 2.25%.

The Bank of Korea issued a statement on the same day that due to the increase in downward risks at home and abroad, the continuous operation trend of price operations, and the inflation expectations of inflation expectations in the short term, monetary policy needs to be arranged early to curb inflation.

The statement said that the price is expected to be higher than the target level in the future, so it is necessary to continue to increase interest rates.In the future, the adjustment of monetary policy adjustment and timing will depend on factors such as price trends, imbalance risks of financial systems, changes in monetary policy, geopolitical risks, and global economic conditions.

Bank of Korea also predicts that in the future, South Korea's inflation rate will remain at about 6%.

In August 2021, the Bank of South Korea raised the benchmark interest rate from 0.5%to 0.75%, and increased to 1%in November of the same year.In January, April, and May of this year, the Bank of Korea raised interest rates continuously and raised interest rates to 1.75%.

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