BOK keeps rate steady at 3% after two consecutive hikes
The Bank of Korea (BOK) held its benchmark interest rate steady at 3 percent, Thursday, in a widely expected decision. The hold follows two consecutive 0.25-percentage-point increases in July and August, which lifted the rate from 2.5 percent to 3 percent. The central bank described the back-to-back hikes as “a preemptive response” to mounting inflationary pressures. Rather than push ahead with a…
The Bank of Korea (BOK) maintained its benchmark interest rate at 3 percent on Thursday, holding firm despite two consecutive 0.25-percentage-point hikes in July and August. The decision comes as the central bank seeks to assess the effects of its recent rate increases on inflation, the foreign exchange market and household debt.
BOK Governor Shin Hyun-song cited the strain that rapid rate hikes have placed on vulnerable borrowers during a parliamentary audit, signaling a desire to take stock of the situation before proceeding. The bank's cautious approach, which leaves the door open to further increases if necessary, reflects a hawkish stance aimed at curbing inflation.
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.
