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S.Korea's economy unexpectedly speeds up, pointing to more rate hikes

2022-07-26 10:04:53       source:Reuters

July 26, 2022

SEOUL, July 26 (Reuters) - South Korean economic growth unexpectedly picked up in the second quarter as strong consumption on eased COVID-19 restrictions offset poor exports, supporting the case for further central bank interest rate hikes.

The Bank of Korea estimated on Tuesday gross domestic product for the April-June period rose 0.7% quarter-on-quarter, faster than the 0.6% growth in the first quarter and above a 0.4% rise tipped in a Reuters survey.

Economists said the upbeat data allowed the central bank, which this month delivered an unprecedented 50 basis-point rate hike, to continue tightening policy in coming months.

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