Seoul – The Bank of Korea (BOK) voted on Thursday to increase its seven‑day repurchase rate by 25 basis points, bringing the benchmark to 3.00%. The move was widely anticipated, with 18 of 35 economists in a Reuters poll forecasting the hike.
Board members cited inflation that continues to run above the BOK’s target range as the primary driver. While price pressures have eased slightly, they remain too high for the central bank’s comfort, prompting the decision to tighten monetary policy again.
Financial‑stability concerns persist
In addition to inflation, the board highlighted ongoing risks to financial stability, including elevated household debt and volatile global markets. By raising rates, the BOK aims to curb borrowing costs and temper credit growth, protecting the broader economy from potential shocks.
Governor Shin Hyun‑Song is scheduled to hold a press conference at 02:10 GMT to elaborate on the policy rationale and outline the bank’s outlook for the coming months.
The rate hike follows a similar move by other major central banks seeking to rein in price growth, underscoring a global trend toward tighter monetary conditions as economies recover from pandemic‑related disruptions.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
