MNI BRIEF: Bank of Korea Raises Policy Rate By 25bp to 3.50%

The Bank of Korea on Friday raised its policy interest rate to 3.50% from 3.25% , maintaining its fight against inflationary pressures, although signalling further hikes will be judged against the growth and financial stability outlooks. The move was largely in line with expectations (MNI BOK WATCH: 25bp Hike Expected, Tightening Pause On Radar).

“The Board will judge whether the Base Rate needs to rise further while thoroughly assessing the economic downside risks and financial stability risks, the effects of the Base Rate raises, the pace of inflation slowdown, and monetary policy changes in major countries,” a statement released by the BOK said.

The BOK has raised the policy interest rate by cumulative 300 basis points since it began its tightening since August 2021. The decision is the seventh consecutive hike and the next meeting is scheduled for February 23.