South Korea has become the first major Asian Country to raise its interest rates since the commencement of the coronavirus pandemic.
The Bank of Korea increased its interest rate from 0.5% to 0.75%, a move that is reportedly aimed at helping curb the country’s household debt.
This decision is coming to play, as the central bank attempts to balance supporting the country’s economic recovery against the risks of surging debt and rising inflation.
Asia’s Policy makers have been signaling deals that showed that they were ready to increase the cost of borrowing since May.
However, the move was delayed as the latest Covid-19 outbreak put the country in partial lockdown in July.