Daniel Moss, Columnist

Korea Got Herograms for Early Rate Hikes. Time For a Breather

Interest rates are back to where they were before Covid struck. How much more work is required to get on top of inflation?

January 14, 2022 at 3:14 AM UTC

By Daniel Moss

Daniel Moss is a Bloomberg Opinion columnist covering Asian economies. Previously, he was executive editor for economics at Bloomberg News.

Taking the road less traveled.
Photographer: SeongJoon Cho/Bloomberg

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South Korea wants to win its tussle with inflation early. The central bank’s back-to-back interest-rate increases get 2022 off to an assertive start. So much so that the bulk of the work might even be done.

The Bank of Korea raised its benchmark rate Friday by a quarter point to 1.25%, as most economists predicted. The nudge followed tightening in August and November, giving the BOK a reputation as one of the more hawkish monetary authorities in Asia, along with the Reserve Bank of New Zealand. While wary of a hit to growth from omicron, getting into a comfortable spot on inflation has been judged the greater priority.