Business

S Korea raises interest rates to 3% to slow inflation

Chicken feet
Image caption The cost of all kinds of food has been rising across Asia

South Korea has raised interest rates, the latest Asian country to step up its fight against inflation.

The Bank of Korea lifted its main interest rate by a quarter of a percentage point to 3%.

Many analysts had questioned the central bank's decision not to raise borrowing costs in February.

Inflation in Korea is currently running at more than 4% and the central bank is fighting against a regional rise in food and energy costs.

Analysts said they expect rates to climb higher by the end of this year.