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Inflation

Bank of Korea hikes key rate by half a point to fight inflation

Recession fears build as central bank focuses on prices while growth slows

Bank of Korea Gov. Rhee Chang-yong: Like many others, the central bank is battling high inflation.   © Reuters

SEOUL -- The Bank of Korea raised its benchmark interest rate by half a percentage point on Wednesday, taking a more active inflation-fighting role as the import-dependent country struggles with soaring energy and food prices.

South Korea's central bank said that its Monetary Policy Board hiked the key rate to 2.25% from 1.75%, following a 25-basis-point increase in the previous meeting in May.

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