SK raises rates for 1st time in over six years

Advanced Search

The story appears on

Page A11

December 1, 2017

GET this page in PDF

Free for subscribers

View shopping cart

SK raises rates for 1st time in over six years

Source: AFP | 00:01 UTC+8 December 1, 2017 |

Print Edition

SOUTH Korea yesterday lifted interest rates for the first time in more than six years, citing a strong economic recovery, and possibly leading the way for similar actions from other Asian central banks.

The hike comes on the back of a series of upbeat readings on Asia’s number four economy that have seen the Bank of Korea and International Monetary Fund lift their growth forecasts and despite an increasingly belligerent Pyongyang.

The BOK lifted borrowing costs to 1.5 percent, up 25 basis points and the first since June 2011, pointing to a “solid trend of domestic economic growth,” adding there have been moderate improvements in private consumption and strong growth in exports.

“Regarding further rate hikes, we will thoroughly monitor the basic flow of growth and inflation,” BOK Governor Lee Ju-Yeol said.

Yesterday’s announcement comes as central banks in Asia prepare for a run of increases by the Federal Reserve, which many fear could lead to a flood of cash leaving emerging economies as investors look for better and safer returns.

The US central bank, which has already lifted rates three times since December, is expected to press on with its tightening in 2018 as the world’s top economy improves and Donald Trump looks to push through inflationary tax cuts and spending measures.

Economy

About Us
|
Terms of Use
|
RSS
|
Privacy Policy
|
Contact Us
|
Shanghai Call Center: 962288
|
Tip-off hotline: 52920043

沪ICP证：沪ICP备05050403号-1
|
互联网新闻信息服务许可证：31120180004
|
网络视听许可证：0909346
|
广播电视节目制作许可证：沪字第354号
|
增值电信业务经营许可证：沪B2-20120012

SK raises rates for 1st time in over six years

Email this to your friend