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FinanceBank of Korea delivers second consecutive rate hike to 3%
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The Bank of Korea (BoK) raised its benchmark lending rate by 25 basis points to 3%, marking the 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 hike. The move reflects the central bank's continued tightening stance amid persistent inflationary pressures and robust economic performance.
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 previous 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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Part of this Story
Bank of Korea Raises Key Rate to 3% Amid Persistent Inflation