South Korea Central Bank Raises Rate 25bps to 3.25%
The Bank of Korea increased the 7-day repurchase rate by 25 basis points to 3.25% from 3.00% previously. On the decision the Bank of Korea said: "The committee expects inflationary pressures to continue in the coming months, driven largely by increased demand from the economic upswing and by inflation expectations,".
In its May meeting the Bank of Korea maintained the 7-day repurchase rate unchanged at 3.00%. South Korea reported consumer price inflation of 4.1% in May, down slightly from 4.2% in April, and 4.7% in march, yet above the Bank's inflation target of 2%-4% through 2012.