Bank of Korea raises key interest rate to 2.50% from 2.25% as expected

South Korea's central bank said that its Monetary Policy Board hiked the key rate to 2.50% from 2.25% as expected.

The central bank raised its key interest rate on Thursday in a bid to keep inflation under control and prevent capital outflows as the U.S. Federal Reserve gears up for more hikes.

The Bank of Korea raises the 2022 CPI forecast to 5.2% from 4.5% in May and cut the 2022 GDP forecast to 2.6% from 2.7%.

All but one of the 36 analysts in a Reuters poll expected the bank to go for the quarter-point hike, while one expected a half-point hike.