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Bank of Korea Governor announces steady 2.5% interest rate amid Middle East war uncertainties.
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Bank of Korea holds key rate at 2.5% for seventh straight meeting amid Middle East war

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South Korea's Bank of Korea unanimously kept its benchmark interest rate unchanged at 2.5 percent on April 10, marking the seventh consecutive hold since July 2025 amid high uncertainty from the Middle East war, which has fueled inflation risks, growth slowdowns, and won weakness. Governor Rhee Chang-yong noted the won could strengthen quickly if tensions ease. The next policy meeting is May 28.

Tomato prices have surpassed 60 pesos per kilo in some Mexican self-service stores, despite PACIC commitments to keep them between 26 and 40 pesos. ANTAD president Diego Cossío Barto attributes the rise to weather factors and logistics costs. The situation highlights vulnerabilities in production, especially in Sinaloa.

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South Korea's import prices surged 16.1 percent in March, the sharpest rise in over 28 years, driven by soaring global oil prices amid the Middle East conflict, Bank of Korea data showed. Dubai crude jumped 87.9 percent to $128.52 per barrel. The export price index also rose 16.3 percent.

The Reserve Bank of India's Monetary Policy Committee on Wednesday kept the key policy rate, the repo rate, unchanged at 5.25 per cent. Amid uncertainties from the West Asia conflict, the committee retained its neutral stance. It has lowered the GDP growth forecast to 6.9 per cent for FY27.

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Egyptian President Abdel Fattah Al-Sisi called on Monday for sustained efforts to curb inflation and maintain a flexible, unified exchange rate, while ensuring sufficient foreign currency to support economic activity. The remarks came during a meeting with Prime Minister Mostafa Madbouly and Central Bank Governor Hassan Abdalla.

South African petrol prices will rise by R3.06 per litre to R23.25 inland from midnight on 1 April, while diesel reaches a record R26.11 per litre after a R7.51 increase. The hike stems from global oil prices exceeding $100 per barrel amid the Iran war and a weakened rand. A temporary R3 per litre reduction in the fuel levy cushions the impact.

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Mexico's central bank (Banxico) cut its benchmark rate by 25 basis points to 6.75% on March 26, 2026—following its prior reduction to 7% in December 2025—approved by a 3-2 vote amid persistent inflationary pressures from fruit/vegetable surges and geopolitical tensions. The Board signaled potential for another cut based on evolving conditions, with analysts split on timing.

 

 

 

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