South Korea raises prices among domestic debt, inflation concerns | Business and Economy

Bank of Korea raises interest rates by 25 basis points by 1 percent.

South Korea’s central bank raised interest rates and revised its inflation expectations on Thursday, as many expected, as concerns over rising mortgage rates and inflation show a sharp rise in inflation next year.

The Bank of Korea’s monetary policy body raised lending rates by 25 basis points to 1 percent – a move expected by 29 of the 30 experts in a Reuters survey. One expert saw the bank raise interest rates by 50 points to 1.25 percent.

It also raised its forecast for next year’s inflation to 2 per cent from 1.5 per cent in the past, highlighting the importance of inflation amid concerns over inflation and long-term volatility.

The three-year Treasury Bond futures rose to 0.14 point when the bank released its forecast, while the KOSPI benchmark and gains fell.

South Korea has been at the forefront of the global financial recovery roll as Central Banks begin to reduce the impact of the epidemic to accelerate inflation and economic instability.

After raising interest rates in August for the first time in nearly three years, consumer prices in four Asian economies rose to a ten-year high in October.

The economy grew by 4 percent in the third quarter, due to the high number of chips and petrochemical fuel items and the excitement of last year’s epidemic.

The bank continues to see the economy grow by 4 percent this year and 3 percent in 2022, as planned in August.

Rising prices and strong growth have prompted many Reuters interviewers to come up with their own predictions. Researchers now see interest rates reaching 1.25 percent in the first quarter and 1.5 percent at the end of 2022.

‘Wealth inequality’

“Price increases are expected in November because growth is strong and inflation is on the rise. Another rise is expected early next year to address the economic crisis,” said Yoon Yeo-sam, a Meritz Securities expert.

One of the problems with this is the recent rise in the daily number of cases of COVID-19, which reached more than 4,000 for the first time on Wednesday, undermining hope for the coming months.

BOK in August became Asia’s largest bank to start raising interest rates since the start of the COVID-19 epidemic.

New Zealand Wednesday raised interest rates again in two months and the United States Federal Reserve is expected to shift its stance to inflation.

All eyes are now on the Governor Lee Ju-yeol’s press conference at 02:20 GMT, where investors will look for timely guidance to promote the next point.