BOK pressed to further raise key rate to track Fed's latest hike
The Bank of Korea is likely to come under growing pressure to further raise its benchmark rate after the U.S. Federal Reserve delivered its first rate hike in over three years to combat rising inflation, watchers said Thursday. Overnight, the Fed raised its benchmark interest rate by a quarter percentage point in its first hike since July 2023 to the 3.75-4.00 percent range while signaling the…
The Bank of Korea is expected to face mounting calls to increase its key interest rate following the U.S. Federal Reserve's decision to raise rates for the first time in over three years, according to market observers. The Fed's move, a quarter percentage point hike to the 3.75-4.00 percent range, was announced overnight in response to inflationary pressures and elevated oil prices.
This leaves the interest rate gap between Korea and the U.S. at up to one percentage point. The Federal Reserve's action comes on the heels of the Bank of Korea's own two consecutive rate hikes in July and August, the first back-to-back increases since January 2023. These hikes followed a series of seven consecutive rate increases initiated in April 2022.
Analysts suggest that the combination of persistently high inflation, a strengthening currency, and growing household debt will likely drive the Bank of Korea to further raise its benchmark rate this year.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- What smart people in business and economics are saying about the Fed interest rate hike businessinsider.com
- Trump demands 1% US interest rate after Fed delivers first hike in three years gulfnews.com
- Trump lashes out at Fed after Warsh backs rate hike; says rates should be '1% or less' channelnewsasia.com
- BOK pressed to further raise key rate to track Fed's latest hike en.yna.co.kr
- Hong Kong follows US Fed with first rate hike in over three years straitstimes.com
- Seoul stocks open higher despite first Fed rate hike in over 3 years koreatimes.co.kr
- Stock futures rise after Fed's rate hike spurs a market sell-off: Live updates cnbc.com
