world-economy

South Korea Tightens Policy Again as Growth Outpaces Inflation Concerns

The Bank of Korea lifted its benchmark interest rate for a second consecutive meeting Tuesday, citing robust economic expansion and risks from an exceptional semiconductor cycle. The rate increase marks the central bank's continued effort to prevent price pressures from accelerating amid stronger-than-expected growth. Across Asia, monetary authorities are charting divergent paths. The Philippine central bank advanced plans for a third consecutive rate increase to combat persistent inflation and support the peso. Uzbekistan's central bank governor signaled openness to easing measures this year after progress on price control, prioritizing growth stimulus. In the U.S., Federal Reserve officials indicated readiness to raise rates if inflation fails to moderate, though recent data showed muted price advances and weakening consumer spending, potentially providing the Fed flexibility to maintain current policy.