Korean central bank raise interest rate to 2.75 pct.
key interest rate by a quarter percentage point on Thursday in a bid to
contain mounting inflationary pressure, Yonhap News Agency reported.
Bank of Korea (BOK) Governor Kim Choong-soo and his fellow policymakers
hiked the benchmark seven-day repo rate, dubbed the base rate to 2.75 percent.
It marked the third rate increase since the onset of the global financial
crisis. The BOK raised the borrowing costs by a quarter percentage point last
July and November from a record-low two percent in an effort to normalize its
loose policy stance and tame inflation.
"Amid rising demand-pull inflationary pressure, the country's consumer
prices will be under mounting upward pressure from the supply side like gains
in prices of raw materials and agricultural products," the BOK said in a
statement carried by Yonhap.
South Korea is grappling with growing inflationary pressure because the
relatively strong economic growth and rising oil and grain prices are exerting
upward pressure on the country's consumer prices, the report said.
The spill-over impacts from China's inflation are also feared to add to
price pressure, it noted.
President Lee Myung-bak has declared a "war" on inflation, and the
government unveiled a set of anti-inflationary measures, including a freeze in
college tuition and public utility charges.
All KUNA right are reserved 2011.
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|Publication:||Kuwait News Agency (KUNA)|
|Date:||Jan 13, 2011|
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