Economy of South Korea came under pressure as its June inflation hit a record 24-year high. Such a fast pace has been recorded for the first time since the Asian financial crisis. This acceleration has fanned expectations that Bank of Korea (BOK) will deliver a 50 basis point rate hike next week. The rate hike would help cool down prices and control capital outflows.
Government data showed that the consumer price index (CPI) rose 6% in June from 2021. The rise is the fastest since November 1998; it exceeds the central bank's target of 2% for the 15th consecutive month.
Previously, Bank of Korea's Governor Rhee Chang-yong said he would keep a window open for a possible 50 basis point hike before the bank's next rate decision on July 13. In the meantime, he will continue to mon...
