South Korea raised interest rates for the second time in three months, expressing confidence in the global economic recovery while giving priority to moves to curb accelerating inflation and soaring household debt.
The Bank of Korea increased its benchmark seven-day repurchase rate by 0.25 percentage point to 1% on Thursday. In August, South Korea became the first developed economy in Asia to raise rates since the start of the Covid-19 pandemic, nudging up from a low of 0.50%.
