BoK hikes rates by 25 bps to 3.50%, as widely expected

The Bank of Korea (BoK), the South Korean central bank, raised the benchmark interest rate by 25 basis points (bps) from 3.0% to 3.50% at its January monetary policy meeting, as widely expected.

Summary of the statement

Economic growth to slow.

Gdp growth to be slower than expected.

Inflation to slow gradually.

Housing price decline accelerated.

Has no reference to need for more rate hikes.

Assessment of recent rate hikes to factors to be considered going forward.

Polcy focus will remain on containing inflation.

Extends existing measures to support short-term money markets by three months.