South Korea announces second successive rate hike
Currency traders watch monitors at the foreign exchange dealing room of the Hana Bank headquarters in Seoul. (AP Photo)
South Korea's central bank hiked interest rates on Aug. 27 for the second time in a row as it said economic growth remained strong and warned inflation would likely remain elevated for some time owing to higher energy costs.
The Bank of Korea said in a statement that it was appropriate to raise the base rate because "the domestic economy has continued to grow at a stronger-than-expected pace, supported by strong exports and a recovery in domestic demand."
"In this context, it is important to prevent inflationary pressures from becoming widespread through preemptive action."
