South Korea’s Central Bank Hikes Rate to Pre-Pandemic Level

South Korean central bank on Friday raised its interest rate to the level before pandemic citing to combat inflation and household debt.

The monetary policy committee of Bank of Korea raised borrowing costs by 25 basis points to 1.25% which was a move expected by 25 of 35 analyst in Reuters poll.

South Korea earlier has also been front runner in withdrawal of pandemic lead stimulus and also shifted away from the general consensus inflation in transitory.