Central bank seeks to curb inflation, but rate increase will likely be painful for many firms and households
South Korea’s central bank took the highly unusual step on Wednesday of raising its target policy rate by 0.5 percentage point (pp) to 2.25% from 1.75%.
The speed of the rise, which still leaves BOK policy lagging behind the Federal Funds Rate ahead of the next meeting of the Fed’s Federal Open Market Committee (FOMC) later this month, appears to be designed to achieve the following goals.
South Korea’s central bank took the highly unusual step on Wednesday of raising its target policy rate by 0.5 percentage point (pp) to 2.25% from 1.75%.
The speed of the rise, which still leaves BOK policy lagging behind the Federal Funds Rate ahead of the next meeting of the Fed’s Federal Open Market Committee (FOMC) later this month, appears to be designed to achieve the following goals.
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