South Korea’s central bank raised its benchmark interest rate to 3.00% on Thursday, marking a second consecutive increase as inflation persists above target and financial stability risks remain. The seven-member monetary policy board of the Bank of Korea voted to lift the seven-day repurchase rate by 25 basis points.
The decision, widely anticipated by markets, was predicted by 18 of 35 economists surveyed in a Reuters poll. Governor Shin Hyun Song is scheduled to hold a press conference at 0210 GMT to provide further details on the policy move.
The back-to-back hike underscores the central bank’s focus on addressing inflationary pressures while balancing broader economic risks. The rate adjustment follows a prior increase and reflects ongoing concerns over price stability in the South Korean economy.
