Bank of Korea Raises Policy Rate 0.25%p... Resumes Tightening After 3 Years 6 Months

The Bank of Korea raised its benchmark rate to 2.75% on June 16, restarting the monetary tightening cycle after 3 years 6 months. This decision reflects judgment that the persistent inflation surge and rising household debt, along with soaring housing prices in Seoul metropolitan areas, can no longer be ignored. Markets now weigh the possibility of additional rate hikes following this increase.