• The Bank of Korea decided to increase its policy interest rate to 3.50%.
• This is the tenth highest interest rate.
• Total basis points increased to 300.

The central bank of South Korea increased its benchmark interest rate by 25 basis points on Friday, a move that was widely anticipated and that many economists believed would signal the conclusion of a tightening cycle that started in 2021.

The Bank of Korea announced that the decision to increase its policy interest rate (KROCRT=ECI) to 3.50%, the highest level since December 2008, had been made by its seven-member monetary policy board. It didn’t go into detail about the choice.

In a poll, 36 out of 40 experts predicted an increase, while the remaining four predicted that the central bank would keep the rate constant at 3.25%.

The decision on Friday represented the tenth hike in interest rates since the current tightening cycle started in August 2021, bringing the total increase to 300 basis points.

[embedpost slug = “/exim-bank-of-korea-to-raise-financing-for-pakistan-to-1-billion/”]