South Korea central bank delivers back-to-back rate hike, as expected
- On Thursday, the Bank of Korea raised its benchmark interest rate by 25 basis points to 3%, marking a second consecutive increase to address persistent inflation and financial stability risks.
- Rising inflation prompted the move, with core rates hitting 2.6% in July and headline inflation trending upward since the Iran war began in February, despite cooling to 2.8%.
- Housing prices in Seoul jumped 2.5% month on month in June, marking the highest rise in five years, according to South Korean news outlet Asia Business Daily.
- Inflation is forecast to remain above the 2% target level for a considerable time, prompting the central bank to "continue a policy stance consistent with further rate hikes."
- BOK Governor Shin Hyun Song will discuss the decision at a press conference today, following a seven-member board vote that aligned with predictions from 18 of 35 economists surveyed.
22 Articles
22 Articles
South Korea prioritises financial stability with consecutive rate increases
South Korea’s central bank has raised interest rates for a second straight month, with analysts saying its semiconductor boom has given policymakers room to confront inflation, a weak won and rising home prices, but at the cost of a deeper squeeze on indebted households and small businesses. The Bank of Korea (BOK) lifted its benchmark rate by 0.25 percentage point to 3.0 per cent on Thursday, a month after an identical increase took it to 2.75 …
Global Market: Bank of Korea hikes rates again to 3% as growth, inflation stay firm
South Korea’s central bank raised its benchmark interest rate by 25 basis points to 3% for a second straight meeting, citing stronger-than-expected economic growth and persistent inflationary pressures from higher energy costs. The Bank of Korea also upgraded its growth forecasts, while strong semiconductor exports and AI-driven chip demand are expected to support the economy and equities.
The Straits Times
Free Malaysia Today NewsSouth Korea announces second successive rate hike
The increase, from 2.75 per cent to 3.0 per cent followed a similar move in July. Read more at straitstimes.com.
South Korea central bank delivers back-to-back rate hike, as expected
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