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FinanceBank of Korea delivers second consecutive rate hike, raises benchmark rate to 3%
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The Bank of Korea (BoK) raised its benchmark lending rate by 25 basis points to 3% on August 27, 2026, marking its second consecutive rate hike following a similar increase in July. Governor Hyun Song Shin announced the decision, citing stronger growth forecasts and signs that inflation is stabilizing, though it remains above the bank's 2% target. The vote was 7-1 in favor of the move. This tightening cycle reflects the central bank's efforts to manage persistent inflationary pressures while supporting economic expansion.
Source report
Hyun Song Shin, Bank of Korea
Central Banking Newsdesk | 27 Aug 2026
The Bank of Korea (BoK) has delivered its second consecutive rate hike, driven by stronger growth forecasts and signs that inflation is stabilising — albeit at a level above the bank's 2% target.
BoK Governor Hyun Song Shin announced that the bank's board had decided to raise its benchmark lending rate by 25 basis points to 3%, according to a press release. The decision follows a 25bp tightening in July.
Shin stated that all but one of the seven board members voted in favour of the decision.
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Bank of Korea Raises Key Rate to 3% Amid Persistent Inflation