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Economy

South Korea hikes key rate to 1% as inflation hits 10-year high

BOK Gov. Lee hints at further increases next year

South Korea's latest rate hike comes as Asia's fourth-largest economy faces rising prices led by global supply chain bottlenecks, stronger oil markets and growing consumer demand.    © Reuters

SEOUL -- South Korea's central bank on Thursday lifted its key interest rate to 1% from 0.75%, as it fights rising prices and soaring household debt.

The Bank of Korea's seven-member monetary policy board agreed on the move -- with one dissent vote to keep the rate -- after raising the rate by 25 basis points three months ago. The decision was widely expected, with 90 of 100 respondents from the fixed income industry predicting an increase in a survey earlier this month by the Korea Financial Investment Association.

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