The Bank of Korea (BOK) added to a wave of global action against inflation by yesterday raising its key interest rate, brushing aside concerns about a leadership vacuum at the bank and global risks to the export-dependent South Korean economy.
The central bank raised its seven-day repurchase rate by a quarter percentage point to 1.5 percent in the board’s first-ever decision without a governor in place.
While the bank warned that the economy would grow less than previously forecast this year, the decision highlights the more pressing sense of urgency among South Korean policymakers to tackle inflation fueled by Russia’s war