BOK stands pat first after delivering seven straight rate hikes amid growth woes

South Korea’s central bank on Thursday kept its benchmark interest rate unchanged for the first time after delivering seven straight increases as concerns are growing over an economic slump. The monetary policy board of the Bank of Korea (BOK) held a m…

South Korea’s central bank on Thursday kept its benchmark interest rate unchanged for the first time after delivering seven straight increases as concerns are growing over an economic slump.

The monetary policy board of the Bank of Korea (BOK) held a meeting and decided to hold the benchmark seven-day repo rate steady at 3.5 percent.

This marked the first time that the BOK has stood pat following seven straight increases delivered since April last year as it has grappled with inflation, according to South Korean News Agency (Yonhap).

Thursday’s freeze came amid rising worries that aggressive monetary tightening that has been enforced over the past 1 and a half years could excessively cool down growth.

The BOK began its rate-lifting cycle in August 2021 after keeping borrowing costs at record lows to bolster the pandemic-hit economy. It has since raised the benchmark rate by a combined 3 percentage points.

The BOK has recently said that it is necessary to take time to appraise the ramifications of those rate increases on the economy and take into consideration various factors, including growth and financial market situations, in setting its future monetary policy directions.

Source: Bahrain News Agency

Total
0
Shares
Previous Article

‫المهرجان الدولي للتصوير “اكسبوجر” يجمع عمالقة التصوير الفوتوغرافي والسينمائي في الشارقة

Next Article

Halo Investing Secures Financial Services Permission from Abu Dhabi Global Market’s Financial Services Regulatory Authority (FSRA)

Related Posts

Ras Al Khaimah witnesses robust business growth in 2023

RAS AL KHAIMAH: The economic growth of Ras Al Khaimah continued to accelerate in 2023, with the Development of Economic Department reporting a 10 percent increase in the total capital of valid business licences issued. This figure reached AED 7.8 bill...

China’s trust assets expand in 2022

China trust industry reported steady expansion last year amid heightened efforts in its structural optimisation and quality development push to better serve the real economy, Xinhua News Agency reported. The country's total trust assets reached 21.14 t...