S.Korea raises interest rate by 25 bps to 3.5 pct

South Korea's central bank on Friday raised the interest rate by 25 basis points, delivering seven back-to-back rate hikes.

Bank of Korea (BOK) Governor Rhee Chang-yong and other monetary policymakers decided to lift the benchmark seven-day repurchase rate from 3.25 percent to 3.50 percent. It marked the seventh successive rate hike for the first time.

The BOK began to tighten its monetary policy in August 2021, hiking the key rate by 25 basis points in April, May, August, and November and by 50 basis points in July and October 2022 respectively.

The Friday hike was in line with market expectations. According to the Korea Financial Investment Association poll of 100 fixed-income experts, 67 percent predicted the 25-basis-point rate increase this month.