Bank of Korea Leads the Way in Asia With Interest-Rate Hike
- Other central banks in the region may be set to follow suit
- One board member dissented with call to keep policy on hold
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The Bank of Korea raised its benchmark interest rate for the first time since 2011, marking a likely turning point for Asian central banks.
The region faces rising pressure to increase borrowing costs after the Federal Reserve began tightening at the end of 2015 and today’s move in Seoul is the first hike of a benchmark rate by a major central bank in Asia since 2014.