South Korea lifts rates to combat inflation

| March 10, 2011 | 0 Comments
South Korea lifts rates to combat inflation

South Korea’s central bank has today elected to lift interest rates in order tame high inflation.

The move did not come as a surprise to analysts after the bank lifted its main interest rate from 2.75% to 3%.

Analysts believe more rate hikes are on the cards, with many predicting rates to be between 3.5% and 3.75% by the end of 2011.

The policy moves come as inflation is currently hovering around the 4.5% mark - a 27-month high and is at the higher end of the central bank’s 2%-4% target.

Inflationary pressures are rife in Asia and many central banks have opted to hike interest rates in an attempt to combat rising prices.

In the last few weeks, central banks in China, Indonesia, Vietnam, Thailand and India have all increased interest rates.

Tags: , combat, , , pressures, raise,

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