The Bank of Korea has returned to extreme interest rate hikes and warned of slower growth. 

South Korea’s central bank increased its seven-day buyback rate by half a percentage point to 3 percent, a 10-year high, on Wednesday, as expected by 16 of 19 economists polled by Bloomberg. 

In a statement after the decision, the Central Bank said, “Although domestic economic activity has slowed down, the Board sees that interest rate hikes continue, as inflation is expected to remain high, significantly above the target level.” 

The economy is expected to grow slower than the 2.1 percent forecast in August next year. 

The Central Bank of South Korea has become the latest central bank to respond to the Fed’s doubling of significant rate hikes to curb inflation.