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Bank of Korea Flags More Rate Hikes to Come Over Inflation Fears

  • Lee says policy rate still accommodative despite hike to 1.25%
  • Bonds, equities fall as investors see more rate rises coming
Outside the Bank of Korea in Seoul.

Outside the Bank of Korea in Seoul.

Photographer: SeongJoon Cho/Bloomberg
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Bank of Korea Governor Lee Ju-yeol signaled the likelihood of more interest rate increases to come following Friday’s hike, as the central bank clearly put inflation concerns ahead of uncertainties over Covid-19.