South Korea's central bank raises interest rates

Fighting inflation, the Central Bank of South Korea decided to raise interest rates again.

The bank increased its policy rate by 25 basis points to 1.75 percent. This was also the expectation of economists participating in the Bloomberg survey.

The last decision was the fifth rate hike decision since the summer months.

The bank also raised its inflation projections. The Central Bank of South Korea, which had previously seen 3.1 percent inflation for 2022, increased this expectation to 4.5 percent. The growth expectation for the same period was reduced from 3 percent to 2.7 percent.