Bank of Korea raises interest rate by 25 bps to 2¾%

By Richard Connell

New York, Jan. 13 - The Monetary Policy Committee of the Bank of Korea increased its base interest rate by 25 basis points to 2¾% at its meeting on Thursday, according to a news release issued by the bank.

The committee assessed that the domestic economy of Korea maintained its upward trend, led by exports, private consumption and improved labor market conditions.

Looking forward, the committee forecasts the economy to continue its upward movement, in spite of the presence of external risks.

CPI Inflation rose to 3½% in level, driven by higher prices of petroleum and farm products.

The committee expects inflation expectations to increase in the coming months as the economic recovery continues and international commodity prices rise.

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