S.Korea base rate hiked 25 bps to 1.75 Reuters poll 1.75
BOK upgrades 2022 inflation outlook to 4.5
Most analysts see base rate at 2.25 by end2022

SEOUL, May 26 Reuters South Korea39;s central bank on Thursday delivered backtoback interest rate hikes and forecast further aggressive increases to wrestle consumer inflation down from 13year highs.

The Bank of Korea raised its benchmark policy rate by a quarter of a percentage point to 1.75, the highest since mid2019, joining a global wave of tightenings as central bankers grapple with price spikes not seen in decades.

On Wednesday, New Zealand39;s central bank hiked by an aggressive 50 basis points.

The BOK upgraded its inflation forecast to 4.5 for this year, the highest since 2008 and more than double the bank39;s 2 target amid a surge in commodity prices driven by the Ukraine war and global supply chain snags.

Our policy focus will be on price stability for some time, and it would be appropriate to say that time frame would be for a few months, for now, Governor Rhee Changyong said at a news conference after the sixmember board39;s unanimous rate decision.

All but one of the 28 analysts polled by Reuters expected a hike. 

Backtoback interest rate rises by the BOK follow more than 100 cumulative basis points of hikes since August 2021 in one of the most forceful tightening campaigns ever by the bank.

A major concern is consumer inflation running at a 13year high, which threatens to become entrenched, as a key…