Central Bank of South Korea leaves rates at an all-time low, analysts see first hike in 2022

The South Korean central bank left rates unchanged at an all-time low of 0.5%. The decision is in line with analysts’ estimates that the Bank of Korea will start raising rates in 2020, due to the jump in house prices and the acceleration of inflation: phenomena that are already occurring in the face however of a new increase in coronavirus cases, which for now obliges the institution to be cautious. In March, South Korean inflation as measured by the consumer price index rose 1.4%, the fastest pace since January 2020.