First South Korean Central Bank Rate Hike Since January 2023 and More Moves Likely to Follow
July 15, 2026
The Bank of Korea Board decided unanimously to raise the one-week repo rate to 2.75% from 2.50%, noting that inflation is likely to stay above the 2.0% target for “a considerable time,”citing improve economic demand, and expressing some concern about the won, housing price inflation and household debt. The statement of explanation concludes that officials “judge that it will be necessary to continue a policy stance consistent with further rate hikes.” Between October 2024 and May 2025, four cuts of 25 basis points were undertaken, and the cyclical peak before that easing cycle was 3.50% and maintained for 21 months.
Copyright 2026, Larry Greenberg. All rights reserved.
Tags: Bank of Korea
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