Economics
Bank of Korea Raises Benchmark Rate for First Time in a Year
- Hike expected to ease financial imbalances, Governor Lee says
- Two board members dissent, voting to keep rate unchanged
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The Bank of Korea raised its key interest rate for the first time in a year, choosing to prioritize heading off financial imbalances despite an uncertain economic outlook.
The decision on Friday to increase the seven-day repurchase rate to 1.75 percent from 1.5 percent was forecast by 14 of 18 economists surveyed by Bloomberg. The remaining four had predicted no change.