South Korea raises policy rate

Bank of Korea, Seoul
The Bank of Korea

The Bank of Korea raised its base rate by 25 basis points to 0.75% on August 26, making it the first major central bank in Asia to tighten policy this year.

South Korea’s year-on-year inflation rate was 2.6% in July. The central bank has a medium-term target of 2%. The first time this year that inflation rose above 2% was in April, when it reached 2.3%.

The bank’s monetary policy board agreed to raise rates by a majority vote of five to one. Joo Sang-yong was the only dissenter, as he called

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