CNBC, an American economic media outlet, reported on the 26th (local time) that Korea was the first among ‘advanced countries’ to raise interest rates after the corona pandemic (pandemic).
CNBC said in the headline as well as the article section that Korea became the first country to raise interest rates among developed economies. CNBC said that Korea is an ‘advanced country’.
The US has not even dared to raise interest rates and remains at the level of reviewing tapering (the Federal Reserve’s reduction in asset purchases), and none of the major European economies has raised interest rates yet.
Originally, New Zealand was expected to be the first among advanced economies to raise interest rates.
Thanks to brisk exports, Korea is performing the best among major economies, with GDP growth expected to reach 4% this year.
CNBC analyzed that this is because the government is effectively controlling Corona 19 without a full lockdown.
In fact, there is a country that raised interest rates before Korea. That’s Brazil. However, Brazil is not a developed economy, but a developing economy.
Therefore, the country that raised interest rates for the first time after the corona pandemic is Brazil, but the country that raised interest rates for the first time among developed countries is Korea.
The British Financial Times (FT) reported that the Bank of Korea decided to raise interest rates for the first time among ‘big Asian economies’. Bloomberg also used the word ‘Asian economic powerhouse’.
However, only CNBC used the word developed country. This means that Korea is already recognized as an advanced country.
Most Koreans do not want to admit that Korea is an advanced country because of high house prices. However, some foreign media are already treating Korea as an advanced country.
This appears to be due to COVID-19. It is interpreted that the foreign media’s view of Korea has changed as Korea has set an example for corona prevention to the world since the outbreak of Corona 19.
Meanwhile, the Bank of Korea held a Monetary Policy Committee meeting on the 26th and raised the benchmark interest rate from 0.50% to 0.75%, suggesting a ‘gradual interest rate increase’.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.