S.Korea raises interest rate by 25 bps to 3.25 pct
South Korea's central bank on Thursday (Nov. 24) raised the interest rate by 25 basis points, delivering six back-to-back rate hikes for the first time.
Bank of Korea (BOK) Governor Rhee Chang-yong and other monetary policymakers decided to lift the benchmark seven-day repurchase rate from 3.00 percent to 3.25 percent. It marked the sixth straight rate hike for the first time.
The BOK set off its tightening monetary policy in August last year, hiking the benchmark rate by 25 basis points in April, May and August and by 50 basis points in July and October respectively.
The Thursday hike was in line with market expectations. According to a Korea Financial Investment Association poll of 100 fixed-income experts, 70 percent predicted the 25-basis-point rate increase this month.
The survey showed that 29 percent of respondents expected a 50-basis-point rate hike.