Korea raises rates to tame money growth

The Bank of Korea lifted raised interest rates by a quarter percentage point to 4.75% on 12 July. It was the first increase in Korean rates since August 2006.

Governor Lee Seong Tae said after the meeting that the rate increase was required because of the rapid rate of credit extension, particularly to small businesses, is fuelling the money supply and could pose inflation risks.

"High money supply growth is continuing until now, which was incorporated into today's decision along with a rallyi

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