South Korea raises interest rates to 1% to curb inflation

South Korea raises interest rates to 1% to curb inflation
South Korea raises interest rates to 1% to curb inflation

The Central Bank of South Korea decided on Thursday, interest rate hike The principal amount was increased by a quarter of a percentage point to 1% to combat inflation and the growth of household debt.

This decision ended 20 months of keeping the interest rate below 1%, after the central bank decided in March of last year to cut interest rates by half a percentage point to 0.75%. Two months later, the rate was cut again to an all-time low of 0.5%.

The interest rate remained at the level of 0.5% until August, when the central bank decided to increase the interest rate first in the era of the epidemic by a quarter of a percentage point to 0.75%, according to the agency “DPA”.

The South Korean Yonhap News Agency indicated that the decision to raise the interest rate came amid concerns about inflation and rapidly rising household debt, despite signs of economic recovery from the slowdown caused by the pandemic, as consumer price inflation in South Korea rose to 3.2% annually during the past month, which is Its highest level since January 2012.

Household debt also rose as a potential drag on the economy, as it grew at a rapid pace amid record low borrowing costs that had been in place for an unusually long period.

According to central bank data, household debt reached an all-time high of 1844.9 trillion won ($1.58 trillion) at the end of last September, up 36.7 trillion won from its level three months ago.

Despite these concerns about the economy, market watchers said the central bank may raise the interest rate at least once in the first half of next year, amid persistent concerns about inflation and household debt.

These were the details of the news South Korea raises interest rates to 1% to curb inflation for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.

It is also worth noting that the original news has been published and is available at saudi24news and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.

PREV Oil stocks in the United States are falling less than expected
NEXT Oil prices are stabilizing and attention turns to the OPEC Plus...

Author Information

I have been an independent financial adviser for over 11 years in the city and in recent years turned my experience in finance and passion for journalism into a full time role. I perform analysis of Companies and publicize valuable information for shareholder community. Address: 2077 Sharon Lane Mishawaka, IN 46544, USA Phone: (+1) 574-255-1083 Email: [email protected]