South Korea’s central bank delivers historic half-point hike to cool inflation

SOUTH Korea’s central bank on Wednesday delivered a historic half-point interest rate hike to hose down inflation that is running at its fastest pace in 24 years. The Bank of Korea raised its benchmark policy rate by 50 basis points to 2.25 per cent, the biggest increase since the bank adopted the current framework in 1999. Twenty-seven of 32 analysts in a Reuters poll expected the bank to go for the half-point hike, while the remaining five expected a quarter-point hike. Governor Rhee Chang Yong will hold a news conference at 0210 GMT. REUTERS