-
Japan:
Second India-Japan strategic dialogue on economic issues
China:
India-Brazil-South Africa to cooperate in health sector
South Korea:
South Korea Gives US Beef The All Clear
India:
Indian government approves re-structured APDRP
Pakistan:
Restoration of Indo-Pak dialogue to push trade
Singapore:
India-Brazil-South Africa to cooperate in health sector
Thailand:
Fastest Growth for Thailand Economy in Six Quarters
Taiwan:
Taiwan Enjoy Expanded Trade Surplus
Indonesia:
Central Bank Chief Of Indonesia Detained
Malaysia:
Malaysia economy grows and banking liberalises
Bank Of Korea In Shock Interest Rate Hike
by Stewart DouglasThe Bank of Korea has today announced yet another interest rate rise, despite analyst predictions that rates would remain consistent.
In the shock announcement this morning, the Bank of Korea Monetary Policy Committee decided to raise interest rates to 5.00% to help reign in inflation.
The Bank had previously maintained interest rates at 4.5% since their last increase in September 2006. The rate increase comes as the second consecutive rate rise in recent months, marking a concern as to inflation.
Last months, the Bank of Korea raised rates by the same quarter of a percent margin, which was predicted to be sufficient control for the time being.
In spite of this, economic indicators in the region showed little necessity for further interest rate rises, particularly at the rate imposed by the Korean central bank over the last two consecutive months.
The consumer price index (CPI), which measures price inflation over a given period produced no startling results, despite the apparent price motivation for today’s unexpected rate increases.
Inflation remained stable at 2.5% over the last month, well within government targets, whilst growth remained favourable to the Korean economy without driving prices.
The quarter percent interest rate increase was preceded with hints of further rises in the coming months, with concerns over free availability of credit and price growth on the cards.
The Korean economy has grown by almost 5% over the last quarter, with growth forecast for next year at 4.5%, suggesting that despite the interest rate rises strong growth is still expected. Retail sales continued to grow as predicted, with no obvious price increase detectable from the CPI figures.
Analysts have been surprised at the urgency with which the South Korean central bank has acted in increasing interest rates, implying some underlying concern as to pending inflationary pressures.
Add to Bookmarks:
Stories related to: Bank Of Korea In Shock Interest Rate Hike
- China In Interest Rate Hike
- Bank of Japan hikes interest rate
- Standard Charter moves on Korea First Bank
- South Korea Bank advises against foreign investment in Korean banks
- Deutsche Bank accused by South Korea of irregularities
- Bank of Japan Maintain Interest Rates Freeze
- Hike in interest rates may worsen the price and supply situation: ASSOCHAM
- Bank of Japan in unanimous vote ot raise interest rates
- Tokyo financial sectors higher on rate hike
- Yen down on low interest rate expectations
Visited 603 times, 1 so far today