S Korea raises interest rates for second month
Friday, 10 August 2007
SEOUL, Aug 9 (AFP): South Korea today raised its key interest rate for the second time in as many months in an attempt to soak up liquidity and keep inflation in check.
The Bank of Korea announced it was raising its benchmark call rate target for August to 5.00 per cent from 4.75 per cent, the highest level in more than six years.
In July, the central bank increased the call rate by 25 basis points to 4.75 per cent, having held it steady for nearly a year.
Monthly growth in money supply hit a near five-year high in June, jumping a record 34.9 trillion won (37.8 billion dollars) to 1,949.5 trillion won.
Growth of bank loans to smaller firms, one of the key reasons behind surging liquidity, slowed in July due to stricter rules but at the same time, monthly household loan growth more than doubled.
Consumer prices rose 2.5 per cent year-on-year in July.
The economy grew 1.7 per cent quarter-on-quarter in the three months to June, expanding at the fastest pace in one and a half years.
Industrial output growth accelerated to 7.6 per cent year-on- year in June after a 6.7 per cent rise in May. Exports rose 20 per cent to over 30.9 billion dollars in July.
The Bank of Korea announced it was raising its benchmark call rate target for August to 5.00 per cent from 4.75 per cent, the highest level in more than six years.
In July, the central bank increased the call rate by 25 basis points to 4.75 per cent, having held it steady for nearly a year.
Monthly growth in money supply hit a near five-year high in June, jumping a record 34.9 trillion won (37.8 billion dollars) to 1,949.5 trillion won.
Growth of bank loans to smaller firms, one of the key reasons behind surging liquidity, slowed in July due to stricter rules but at the same time, monthly household loan growth more than doubled.
Consumer prices rose 2.5 per cent year-on-year in July.
The economy grew 1.7 per cent quarter-on-quarter in the three months to June, expanding at the fastest pace in one and a half years.
Industrial output growth accelerated to 7.6 per cent year-on- year in June after a 6.7 per cent rise in May. Exports rose 20 per cent to over 30.9 billion dollars in July.