South Korea raised its interest rate for the first time in more than three years on July 16, in a bid to combat inflation brought on by the war in the Middle East and slow the growth of the country’s high household debt.
After a monetary policy meeting, the Bank of Korea (BOK) hiked its benchmark policy rate from 2.5 percent to 2.75 percent, the first such move since January 2023.
All seven members of the Monetary Policy Board voted unanimously in favor of the decision.
“Along with economic growth having strengthened, led by exports and investment, inflation is expected to remain above the target level for a considerable time, and financial stability risks also persist. The Board, therefore, judged that it is appropriate to raise the Base Rate by 25 basis points,” the central bank said in a statement released after the meeting….
South Korea Hikes Interest Rates for First Time Since 2023
