PiCK
BOK Raises Benchmark Rate 25 Basis Points to 3.00%, Tightens for Second Straight Meeting
Suehyeon Lee
Summary
- The Bank of Korea raised its benchmark interest rate to 3.00%, extending monetary tightening for a second straight meeting.
- The BOK decided to raise the benchmark rate by 0.25 percentage point to 3.00% from 2.75%.
- The move narrowed the gap between South Korea's and the US benchmark interest rates to 0.75 percentage point from 1 percentage point.
Forecast Trend Report by Period
The Bank of Korea raised its benchmark interest rate to 3.00%, extending monetary tightening for a second straight meeting.
On Aug. 27, the BOK's Monetary Policy Board raised the base rate by 25 basis points to 3.00% from 2.75%. The decision followed last month's first rate increase in three and a half years, resulting in back-to-back hikes.
The BOK's benchmark rate returned to the 3% range for the first time since November 2024, after one year and nine months. The gap between South Korea's policy rate and the US rate narrowed to 0.75 percentage point from 1 percentage point.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.