South Korea has unexpectedly lifted interest rates in part of what President Lee Myung-bak has called his “all-out war” against inflation.
Seoul is attacking inflation with the same gusto that characterised its successful measures to confront the economic downturn.
South Korea’s central bank lifted the base rate by 25 basis points to 2.75 per cent, at the same time as the country revealed measures to control prices of food and basic services.
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