Korean MPC tightens policy again and raises inflation forecast

Bank of Korea, Seoul
The Bank of Korea

The Bank of Korea announced a 25 basis point interest rate hike today (August 25), returning to its usual pace of monetary tightening.

The monetary policy board lifted the base rate from 2.25% to 2.5%, in a decision backed by all its seven members. The rate hike follows the BoK’s first-ever 50bp hike in July.

In a statement, the board said it was acting to prevent high inflation becoming entrenched, saying inflationary pressures and expectations remained high. Uncertainties and economic

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