Bank of Korea lifts rates amid rising inflation concerns

November 25, 2021

SEOUL -- The Bank of Korea (BoK) on Thursday hiked its policy rate by 25 basis points to 1.00%, as widely expected. While it kept its growth forecasts for 2021 and 2022 unchanged, there was a notable upward revision to the bank's inflation forecasts.

BoK kept the door to further rate hikes open, but ANZ Bank says there were few signs otherwise suggesting that a back-to-back increase is on the cards.

"With inflation likely to remain above target in coming months, we are bringing forward our expectation for the next rate hike to materialise in February 2022, from Q3 previously,"ANZ said in an analyst's note.  (ATI)