Thursday, March 10, 2011

Bank of Korea Raises Rate 25bps to 3.00%

The Bank of Korea raised the benchmark 7-day repurchase rate 25 basis points to 3.00% from 2.75% due to rising inflation. South Korea reported inflation of 4.5% in February this year, which is just above the Bank's inflation target range of 2% to 4% through 2012. The Bank is forecasting inflation to stabilize around 3.5% this year, compared to 2.9% in 2010. The South Korean economy grew 0.5% in the December quarter of 2010, bringing overall GDP growth to 6.1% for the year.


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