Bank of Korea delivers back-to-back rate hikes as core inflation stays elevated
The Bank of Korea hiked rates by 25 basis points to 3%, its highest since January 2025 and in line with expectations.
TL;DR
- The Bank of Korea raised interest rates by 25 basis points to 3%.
- This is the second consecutive rate hike by the central bank.
- Core inflation in South Korea reached its highest level since December 2023 in July.
- Headline inflation cooled slightly in July but remains a concern.
- The economy grew 3.7% in the second quarter, exceeding expectations.
- Housing prices in Seoul have seen a significant month-on-month increase.
- The central bank expects inflation to stay above the 2% target for a considerable time.