Korean MPC tightens policy again and raises inflation forecast

Governor says central bank likely to continue with 25bp hikes as core inflation rises

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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