# (4th LD) BOK raises key rate to 1 pct to tame inflation, household debt | Yonhap News Agency

> The Bank of Korea raised its benchmark rate by 0.25 percentage point to 1%, ending 20 months at near-zero rates. It raised its 2021 inflation forecast to 2.3% and its 2022 forecast to 2%, and signaled room for another hike in early 2022. The central bank kept its 2021 growth forecast at 4%.

- Date: 2021-11-25 · published 2021-11-25T12:00:00.000Z
- Category: macro · region South Korea · magnitude low
- Page: https://feedsoft.ai/events/44285-4th-ld-bok-raises-key-rate-to-1-pct-to-tame-inflation-household-debt-yonhap
- Commodities: [Korean Won (KRW per USD)](https://feedsoft.ai/c/USDKRW.md)

## Why it matters

Higher Korean rates and a firmer inflation outlook point to tighter domestic credit and possibly softer consumer demand for meat and dairy. Feed buyers face higher financing costs, though the direct effect on grain prices is limited.

## Sources

- en.yna.co.kr: https://en.yna.co.kr/view/AEN20211125001154320

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.