2 months ago
BNN Bloomberg
(Bloomberg) -- The Bank of Korea is poised to return to its usual pace of policy tightening Thursday as it aims to rein in inflation without exacerbating credit risks that threaten to weigh on economic growth. Fifteen of 17 surveyed economists see the central bank raising its key interest rate by a quarter percentage point to 3.25%. The remaining two expected it will back up last month’s half percentage-point increase with another move of that scale. The faster-than-usual tightening fueled angst in credit markets that were already roiled by the default of a local government-backed developer. That combination sent the spread between three-month commercial paper yields and the BOK’s policy rate to the highest level since the global financial crisis.
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