SEOUL :South Korea’s central bank kept interest rates steady on Tuesday, taking a breather after its first rate hike in nearly three years in August, but flagged further tightening could come as soon as November to curb rising inflation and household debt.
The Bank of Korea held benchmark interest rates steady at 0.75per cent, as widely expected in a Reuters poll, but increased its inflation forecast to the “mid-2per cent level” from 2.1per cent in August. The central bank has an inflation target of 2per cent.
In a rare remark on inflation, President Moon Jae-in also said during a cabinet meeting on Tuesday that the government should make every effort to stabilise consumer prices.
“The bank can consider raising interest rates further at the next meeting should the economic recovery proceed as expected, while monitoring how changes in internal and external conditions affect the domestic economy and inflation,” said Governor Lee Ju-yeol…