South Korean central bank to raise interest rates to 2.50% in October jumped to 4.1% inflation rate

South Korean central bank - the Bank of Korea 16, announced that its benchmark interest rate by 0.25 percentage point to 2.50%, but limits the total amount for the support of SMEs lending rate remains 1.25% level.

By the financial crisis, since August 2008, the South Korean central bank benchmark interest rate gradually decreased from 5.25% to 2% of the historic low, and was maintained for 16 consecutive months, the benchmark interest rate unchanged. Forced to inflationary pressures, in July this year, Bank of Korea raised its benchmark interest rate by 0.25 percentage point to 2.25%. Subsequently, due to slower world economic growth, increasing uncertainty at home and abroad, the Bank of Korea and the benchmark interest rate for three consecutive months will be frozen at that level.

South Korea Monetary Policy Committee said that although the Group of Twenty Seoul (G20) summit so that the "currency war" has cooled, but South Korea October inflation rate has jumped to 4.1%, consumer prices in the further spread of psychological unease, so central bank tightening of monetary policy.

According to the forecast, the central bank to raise interest rates, banks and other financial companies will raise interest on loans, which will result in larger homes and businesses interest burden, and to the entire Korean economy and domestic markets is not a small impact