Korea unexpectedly raises rates

The Bank of Korea raised its benchmark rate to an eight-year high on Thursday in a surprise move.

The central bank raised its key base rate by a quarter point to 5.25%, its highest level since October 2000 on the back of a pick-up in inflation.

Inflation hit 5.9% in the year to July and has outpaced the 3.5% upper limit of the central bank's target band since the start of the year. "Inflation seems likely to remain high for quite some time," the central bank said, though the rise in real-esta