Arab Today, arab today south korea raises key rate to cool inflation
Last Updated : GMT 18:27:13
Arab Today, arab today
Arab Today, arab today

South Korea raises key rate to cool inflation

Arab Today, arab today

Arab Today, arab today South Korea raises key rate to cool inflation

Seoul - AFP

South Korea\'s central bank Friday raised the key interest rate by 25 basis points to 3.25 percent as authorities vowed to step up their battle against inflation in Asia\'s fourth largest economy The unanimous decision by the bank\'s board \"will contribute to easing inflation pressures and stabilising inflation expectations\", governor Kim Choong-Soo told a briefing. The Bank of Korea is paying heed to core inflation to prevent high inflation from becoming \"chronic\", he said. The consumer price index rose an annualised 4.1 percent in May. But core inflation, which strips out volatile energy and food prices, hit a two-year high of 3.5 percent. In a statement, the bank said it expects consumer prices to maintain their strong upward trend, due mainly to demand-side pressures arising from the economic revival as well as high oil prices. \"There is also a possibility of (this) uptrend in core inflation persisting in the future,\" it said, adding future monetary policy would put greater emphasis on ensuring a firm basis for price stability. The country\'s new finance minister separately said he would use \"all possible policy measures\" to tame rising prices. \"Inflation is an issue that affects everything from real income and the domestic demand base to national competitiveness, employment and the ability to cope with external shocks,\" Bahk Jae-Wan said just before the rate rise was announced. The government has declared \"war\" on inflation to try to shore up support among middle and lower-income families before parliamentary and presidential elections next year. The central bank said the domestic economy appears on track for solid growth in coming months, thanks mostly to brisk exports, but risks remain. \"Deepening fiscal problems of certain European countries and political unrest in the Middle East and North Africa will act as major downside risk factors,\" it said. HSBC Global Research called the increase for June the right move and urged other central banks to pay heed. \"Growth isn\'t crashing and rates remain far too low for comfort,\" it said in a commentary, noting that China South Korea\'s top trade partner announced bumper import numbers Friday. \"Korea will continue to normalise policy. Expect the next hike in September and possibly another one in November.\" Barclays Capital economist Wai Ho Leong also predicted the next 25 basis-point increase in September, with the rate at 3.75 percent by year-end. \"The optics of inflation will improve because meat prices are receding and we had a temporary drop of oil prices in May... but if you look at the broader set of prices, the bulk of the goods and services items are still increasing,\" Leong told Dow Jones Newswires. He said the current interest rate appears too low given inflationary pressures and the continued expansion of household credit. But Leong said it was sensible for the bank to take a gradual approach given renewed worries about global economic conditions. South Korea\'s economy grew slightly more slowly in the first quarter than previously estimated due to weaker domestic demand and facility investment, the central bank said earlier in the week. Gross domestic product grew a revised 1.3 percent in January-March from three months earlier, down from an earlier estimate of 1.4 percent.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today south korea raises key rate to cool inflation Arab Today, arab today south korea raises key rate to cool inflation

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today south korea raises key rate to cool inflation Arab Today, arab today south korea raises key rate to cool inflation

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Fighters celebrate Raqa victory

GMT 06:07 2017 Wednesday ,18 October

Fighters celebrate Raqa victory
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Climate-disrupting volcanoes helped topple

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Dalal Abdel Aziz happy for “Seventh Neighbor”

GMT 09:31 2017 Monday ,16 October

Dalal Abdel Aziz happy for “Seventh Neighbor”
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 23:42 2017 Monday ,16 October

Better Marriages Make

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday