S.Korea’s central bank delivers historic half-point hike to cool inflation

Business

South Korea’s central bank on Wednesday delivered a historic half-point interest rate hike to hose down inflation that is running at its fastest pace in 24 years.

The Bank of Korea raised its benchmark policy rate (KROCRT=ECI) by 50 basis points to 2.25%, the biggest increase since the bank adopted the current framework in 1999.

Twenty-seven of 32 analysts in a Reuters poll expected the bank to go for the half-point hike, while the remaining five expected a quarter-point hike.

Governor Rhee Chang-yong will hold a news conference at 0210 GMT.