Bank of Korea Lifts Rates 25 Basis Points to 3% as Core Inflation Hits 2.6%
Updated
Updated · CNBC · Aug 27
Bank of Korea Lifts Rates 25 Basis Points to 3% as Core Inflation Hits 2.6%
3 articles · Updated · CNBC · Aug 27
Summary
A second straight Bank of Korea increase took the policy rate to 3%, the highest since January 2025 and in line with market expectations.
Core inflation rose to 2.6% in July—its highest since December 2023—while the BOK said inflation will likely stay above its 2% target for a considerable time.
South Korea's economy grew 3.7% in the second quarter, stronger than expected and driven mainly by exports, giving policymakers room to tighten further.
Housing prices in Seoul jumped 2.5% month on month in June, their biggest rise in five years, adding to cost pressures alongside oil-price and exchange-rate uncertainty.