The central bank raises its benchmark rate to curb inflation and stabilize the currency after unanimous market expectations.
The Bank of Korea increased its benchmark interest rate by 25 basis points, marking a move to address persistent won depreciation and inflationary pressures. The decision aligns with widespread forecasts ahead of the announcement.
Markets had priced in the hike following recent currency volatility and rising price concerns. The won has weakened significantly against the U.S. dollar this year, adding urgency to the central bank’s policy response.
Governor Shin Hyun Song is scheduled to hold a press conference at 0210 GMT to provide further details on the outlook and policy guidance.