Inflation in South Korea has been exceeding government targets this year South Korea has raised the cost of borrowing in a surprise move as consumer prices continue to rise above government targets.
The Bank of Korea lifted its main interest rate on Friday by a quarter of a percentage point to 3.25%.
It follows quarter percentage point increases in January and March.
Analysts had been divided as to whether the central bank would raise rates, and the decision signals that inflation continues to be the top concern.
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