Korean bank raises rates for first time since last year

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South Korea central bank increased the policy interest rate for the first time in a year.

Korean bank raises rates since November 2017 as Bank of Korea raised policy interest rate today.

Monetary policy committee of Korean bank raises rates. However, it applied to the 7 day repurchase agreement deals, by 1.75% (25 basis points). The news was revealed by the official at the central bank. In addition, Governor Lee Ju-yeol will hold the news conference today.

Bank’s decision is tipped by 15 out of 16 economists in the recent survey, marked the first tightening in policy since 2017. In addition, it brought the benchmark rate to its highest level since last three years.

On the other side, policymakers also showed concern about the property boom in the Seoul area and also the surge in consumer finance by prompting various property restrictions.

Korean public is also expressing mixed reaction over the bank’s decision to raise the rates in the country.

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