Bank of Korea Increases Rate to 3.25%, Sending Currency Higher
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The Bank of Korea raised interest rates for a third time this year to rein in inflation that has exceeded its target range and curb record household debt.
Governor Kim Choong Soo boosted the benchmark seven-day repurchase rate to 3.25 percent from 3 percent, following quarter-percent increases in January and March, the central bank said in a statement in Seoul today. Kim said the decision was unanimous. Eight of 17 economists surveyed by Bloomberg News predicted the decision with the rest expecting no change.