South Korea Central Bank Delivers Back-to-Back Rate Hike, as Expected
The seven-member board voted 25 basis points higher as inflation stayed above target and 18 of 35 economists in a Reuters poll expected the move.
- 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.
16 Articles
16 Articles
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
Seoul stocks trim early gains late Thursday morning
Seoul stocks trimmed their earlier gains late Thursday morning, following a second consecutive rate-hike decision from the Bank of Korea (BOK). After opening 2.76 percent higher, the benchmark Korea Composite Stock Price Index (KOSPI) rose 131.7 points, or 1.93 percent, to 6,939.91 as of 11:20 a.m. Korea's central bank has raised the country's key base rate by 0.25 percentage point to 3 percent at its rate-setting meeting, in a bid to curb mount…
The Bank of Korea's Monetary Policy Committee will hold a meeting on the 27th to decide on the base interest rate. At last month's meeting, the BOK raised the rate from 2.5% to 2.75%, marking the first increase in three years and six months. Previously, a survey conducted by Chosun Biz among 10 macro and bond experts from domestic securities firms revealed that five predicted the BOK members would decide to raise the rate by 0.25 percentage poin…
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- 46% of the sources lean Right
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