Sunday, July 15, 2007

Bank of Korea May Raise Interest Rates Again to Fight Asset-Price Bubble

(Bloomberg) -- Bank of Korea Governor Lee Seong Tae
may increase interest rates for a second time this year to prevent
money-supply growth from fueling bubbles in the stock and property
markets, according to a survey of economists.

Lee and his board colleagues raised the overnight call rate to
a six-year high of 4.75 percent last week, taking aim at record
lending to small companies that threatens to spur inflation. Ten of
11 economists say the bank will increase the rate to 5 percent by
December. One sees no change.


Read more at Bloomberg Emerging Markets News

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