BOK raises benchmark rate to 3% as inflation woes persist
The Bank of Korea (BOK) on Thursday raised its benchmark interest rate by 0.25 percentage point to 3 percent, delivering a second consecutive hike as inflationary pressures persist amid Middle East uncertainties. The BOK also raised its 2026 growth forecast to 3.3 percent from the 2.6 percent projection announced in May, as robust semiconductor exports continued to support the economy. The…
The Bank of Korea (BOK) increased its benchmark interest rate by 0.25 percentage points to 3% on Thursday, marking a second consecutive rate hike, according to source <source dde7cc3c-0d4>. This move came amid persistent inflationary pressures and geopolitical uncertainties originating from the Middle East.
In addition to raising the benchmark rate, the BOK also upgraded its 2026 economic growth forecast from 2.6% to 3.3%, citing robust semiconductor exports that continue to bolster the economy. The central bank's Monetary Policy Board unanimously approved the rate increase, following a similar hike in July.
BOK Governor Shin Hyun-song had previously indicated the possibility of further tightening measures, spurred by concerns over inflation. The stronger-than-anticipated economic growth, as demonstrated by the preliminary data for the second quarter, showed the economy expanding by 0.6%, significantly exceeding the BOK's earlier forecast of 0.2% issued in May.
Moreover, core inflation surged to 2.6% in July, marking its most rapid increase since December 2023 when it had reached 2.8%, as stated in the source <source dde7cc3c-0d4>.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- BOK raises benchmark rate to 3% as inflation woes persist koreatimes.co.kr
