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If authorities push rates up too quickly, South Korea's indebted households could start defaulting.
The Fed might also need to push rates up more aggressively if long-term bond rates continue their recent decline.
It was the first central bank among the G-20 nations to push rates up since the crisis began.
As the economy recovers, the Fed will push rates up, making United States bonds more attractive, which will tend to push the value of the dollar up.
If there was no request from someone at the bank to push rates up or down, the submitters were told to just repeat the previous day's number.
There is infinite room to raise interest rates if inflation runs uncomfortably high (one might even welcome that opportunity to push rates up as that would reduce the probability that rates would fall to zero again in future).
Similar(47)
The bond market found little comfort in the reports, with traders and investors promptly pushing rates up a bit from Tuesday's levels.
But there were risks that inflation could rebound sooner than thought, pushing rates up earlier than expected, one of the Bank's nine rate-setters, Kristin Forbes, said in a speech published on Monday.
The bank might then be forced to print yet more money in order to cover the government's larger interest bill, pushing rates up further and entering a vicious circle.
In fact, he initially pushed rates up further, to 26.5%.
If demand for rentals pushes rates up, that model is going to look a lot more attractive than a heavy manufacturer's bond at 8%.
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