23-09-2022, 12:05 PM
The won plunged by W15.50 against the dollar to close at W1,409.70 after the Fed raised the key rate by 0.75 percent to 3-3.25 percent. Faced with a surge in inflation, the U.S. central bank raised the base rate by half a percentage point in May and by 75 basis points in June, July and September.
The latest hike sent the U.S. key rate to above Korea's base interest rate of 2.5 percent, and analysts expect the won to weaken to W1,450 or even W1,500.
Bank of Korea Governor Rhee Chang-yong admitted he may have to hike interest rates by a bigger margin than he hoped by saying, "The preconditions for a 0.25-percentage-point rate hike have changed considerably."
That would raise the base rate here to three percent, up 2.25 percentage points in just one year. Rising interest rates have already dealt a huge blow to the economy, especially for young people who borrowed heavily to invest in the stock market.
https://english.chosun.com/site/data/htm...00711.html
The latest hike sent the U.S. key rate to above Korea's base interest rate of 2.5 percent, and analysts expect the won to weaken to W1,450 or even W1,500.
Bank of Korea Governor Rhee Chang-yong admitted he may have to hike interest rates by a bigger margin than he hoped by saying, "The preconditions for a 0.25-percentage-point rate hike have changed considerably."
That would raise the base rate here to three percent, up 2.25 percentage points in just one year. Rising interest rates have already dealt a huge blow to the economy, especially for young people who borrowed heavily to invest in the stock market.
https://english.chosun.com/site/data/htm...00711.html