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refusnik

South Korea In Surprise Rate Rise To Fight Inflation

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http://www.bbc.co.uk/news/business-13723337

The Bank of Korea has raised the cost of borrowing in a surprise move, as fighting rising consumer prices emerged as the central bank's top priority.

The bank upped its main interest rate on Friday from 3% to 3.25%.

Many analysts had expected rates to stay on hold again, but the bank has seemingly become uncomfortable with persistently above-target inflation.

Inflation actually fell to 4.1% in May, after peaking at 4.7% in March. The bank targets a range of 2-4%.

Will others finally come to their senses and follow?

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Those crazy South Koreans. Don't they know that deflation is the danger?

S Koreans are crazy alright. In 1997 they voluntarily queued up at government offices to hand in their gold to pay off the IMF loan. Silly sods only have 14 tons of the stuff.

Edited by ken_ichikawa

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Inflation actually fell to 4.1% in May, after peaking at 4.7% in March. The bank targets a range of 2-4%

So South Korea are raising rates to try to keep within their official target range.

The BoE could learn from them.

Mr King should get on the next flight to South Korea to learn lessons.

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  • 311 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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