The Bank of Korea raised the key interest rate again on Thursday, three months after its previous hike.
South Korea's key interest rate now stands at one percent, ending the 20 month-long zero range since the beginning of COVID-19 in March, last year.
For more, we have Professor of Economics, Huh In from the Catholic University of Korea joining us live.
Professor Huh, welcome to the program.
Now, South Korea's key interest rate is up 25 basis points to one percent.
What were the reasons behind the BOK's decision yesterday?
The central bank is concerned about rising inflationary pressure and household debt.
Will the rate hike help ease these concerns a bit?
And the Bank of Korea has maintained is previous economic growth forecast for the country at a growth rate of 4 percent, citing strong exports and a rebound in consumer sentiment.
Do you see this achievable amid the prolonged fourth wave of the pandemic?
Meanwhile, in the U.S., the Federal Reserve this week also signaled a possible rate hike if prices keep rising.
What's your take on this?
Alright. Professor Huh, thank you for your insights. We appreciate it.