Finance, Forex and Investments

When to Raise Interest Rate Gets Much Attention

Summary: As India and Australia raised their key interest rates some in the South Korean market are raising their voices that it is time for the Korean central bank to uplift the borrowing cost The Reserve Bank of Australia RBA raised its benchmark interest rate by 0 25 in seven months on Tuesday and the Reserve Bank of India RBI also raised it by 0 25 in three months As a result Korea is getting external pressures for a higher key interest rate Some forecast that the Monetary Committee at the Bank of Korea BOK will be forced to raise the key rate within the month by the steps taken by the Australian and Indian central banks following China s unexpected action to elevate the rate The chances are high given that inflationary pressures were the deciding factor in Australia and India s decision to raise the rate because Korea is in the same situation where inflationary pressures are piling up That is why much attention is on the next step of the monetary committee Officials in the financial industry point out that it is opportune for the Korean central bank to move up the rate and worries over inflation are fairly justified Others predict that it won t be easy because the exchange rate issue at hand has not been solved yet The monetary committee will hold a meeting on November 16 shortly after the G20 Seoul Summit Written by Won kyung Sung Su hyun Song edited by Soyoung Chung As India and Australia raised their key interest rates some in the South Korean market are raising their voices that it is time for the Korean central bank to uplift the borrowing cost The Reserve Bank of Australia RBA raised its benchmark interest rate by 0 25 in seven months on Tuesday and the Reserve Bank of India RBI also raised it by 0 25 in three months As a result Korea is getting external pressures for a higher key interest rate Some forecast that the Monetary Committee at the Bank of Korea BOK will be forced to raise the key rate within the month by the steps taken by the Australian and Indian central banks following China s unexpected action to elevate the rate The chances are high given that inflationary pressures were the deciding factor in Australia and India s decision to raise the rate because Korea is in the same situation where inflationary pressures are piling up That is why much attention is on the next step of the monetary committee Officials in the financial industry point out that it is opportune for the Korean central bank to move up the rate and worries over inflation are fairly justified Others predict that it won t be easy because the exchange rate issue at hand has not been solved yet The monetary committee will hold a meeting on November 16 shortly after the G20 Seoul Summit Written by Won kyung Sung Su hyun Song edited by Soyoung Chung

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