South Korea’s central bank raises rates by 25 bps, as expected

SEOUL (Reuters) – South Korea’s central bank raised interest rates by a more modest 25 basis points on Thursday, as expected, slowing the pace of policy tightening as it tries to tame inflation without choking off economic growth.

The Bank of Korea (BOK) raised its benchmark policy rate to 3.25%, the highest level since July 2012, after delivering a half-percentage point hike in October.

All but one of 30 economists expected the central bank to opt for a quarter-point hike in a Reuters poll, while one forecast another half-point rise.

The Bank of Korea has raised the policy rate by a total of 275 basis points since August 2021 from a record low of 0.50%.

Governor Rhee Chang-yong will hold a news conference at 0210 GMT.

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