ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

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.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more