Korea raises rates

The Bank of Korea has increased its interest rate by 0.25% to 0.75%.

https://www.reuters.com/business/finance/skorea-seen-delivering-its-first-pandemic-era-rate-hike-2021-08-25/

It’s the first major developed market to increase rates since a few years ago.

Albeit Korea increased its inflation rate expectations, it is the first to cite concern over growing consumer debt posing a risk to the economy.

In my recent posts about Russia, Brazil and Mexico increasing interest rates, their concerns were about the rising cost of living and also pertinent as they are commodity sensitive economies.

These countries don’t have large consumer debt levels, unlike Korea or others appearing in the list below.

So is Australia behind the curve in raising interest rates?

August 26, 2021
by Rob Zdravevski
rob@karriasset.com.au

Consumer Debt to GDP (per country)

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