It is interesting to note that the Bank of Korea unexpectedly raised interest rates from the lows on Friday in which they were at historic lows of two percent. Korea is joining the list of Asian central banks trying to prevent inflation from accelerating in a region that leads the global economic recovery. The Bank of Korea raised interest rates by 25 basis points to 2.25%. It is the first time the rate rises have taken place since August 2008.

The central bank said it will continue supporting growth and simply wanted to place the rates above emergency levels, in which they were cut by 325 basis points between October 2008 and February 2009 to combat the impact of the crisis global economy. However this creates a good penny stocks for dummies scenario in the Korean stock market, as we know that rising interest rates mean that there is an abatement of the global recession. After all this is the only reason that banks will raise their prime rates.