The Bank of Korea is expected to raise its benchmark interest rate by 25 basis points on July 16, taking it from 2.50% to 2.75%, according to the report cited by Techub News. If carried out, it would mark the central bank’s first rate increase since January 2023.
The move is aimed at addressing inflation that has remained above the central bank’s 2% target. South Korea’s consumer price index rose 3.1% year over year in May. The report linked that increase to higher global oil prices driven by tensions in the Middle East, along with support from the country’s strong export sector.
Bank of Korea Governor Shin Hyun-song said policymakers need to act decisively against inflation and expects price pressure to continue through 2027. The report also said the rate decision could affect the won’s exchange rate and capital flows in South Korea’s cryptocurrency market.
The Bank of Korea plans to raise its benchmark interest rate by 25 basis points to 2.75% from 2.50% on July 16, according to a report cited by Techub News. If implemented, it would be the central bank’s first rate hike since January 2023.
According to CryptoBriefing, the move is intended to respond to inflation that has stayed above the 2% target. South Korea’s consumer price index rose 3.1% year over year in May. The report pointed to higher global oil prices tied to tensions in the Middle East, as well as strength in the export sector.
Bank of Korea Governor Shin Hyun-song said inflation needed to be confronted decisively and expects price pressure to last through 2027. The report added that the rate hike could affect the won’s exchange rate and capital flows in South Korea’s cryptocurrency market.
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