Economics

Bank of Korea Poised for Outsized Rate Hike: Decision Day Guide

  • Inflation at 23-year high outweighs risks of economic slowdown
  • Wage-price spiral among key concerns for Korean central bank

The Bank of Korea headquarters in Seoul, South Korea.

Photographer: SeongJoon Cho/Bloomberg
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A large majority of economists see the Bank of Korea raising its benchmark interest rate by a half-percentage-point on Wednesday, doubling the pace of its policy tightening to rein in inflation running at a 23-year high.

A total of 15 economists surveyed by Bloomberg see the central bank raising the rate to 2.25% while only four expect a quarter-percentage-point hike.