Korea extends tightening cycle with rate rise to 3% - FT中文网
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Korea extends tightening cycle with rate rise to 3%

Bank of Korea cites concerns over inflation, Seoul property prices and household debt
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{"text":[[{"start":7.06,"text":"The Bank of Korea has raised its benchmark interest rate by 0.25 percentage points to 3 per cent, delivering a back-to-back increase amid concerns over inflation and financial stability risks."}],[{"start":18.6,"text":"The move announced on Thursday was the second in as many months under central bank governor Shin Hyun-song, a renowned international economist who took up the role in April."}],[{"start":28.48,"text":"Before July’s 0.25 percentage point rise, the BoK had held rates at 2.5 per cent since May 2025."}],[{"start":36.4,"text":"The Korean currency strengthened immediately in the wake of the latest decision to Won1,379 per US dollar, extending a strong rebound that has seen the won lift from multiyear lows of around Won1,550 in early July."}],[{"start":52.52,"text":"The Kospi index was up 1.58 per cent, but slightly off opening highs."}],[{"start":58.32,"text":"The BoK is increasingly concerned about inflation that remains above its 2 per cent target as well as rapid apartment price growth in Seoul and record household debt."}],[{"start":67.88,"text":"GDP growth is also accelerating. Booming global demand for AI-related memory chips prompted the state-run Korea Development Institute to lift its 2026 economic growth forecast from 2.5 per cent to 3.2 per cent last week."}],[{"start":83.36,"text":"The government is meanwhile plotting a more expansionary fiscal stance for next year, enabled by record tax revenues."}],[{"start":90.36,"text":"Market observers had been divided over the central bank’s rate decision this week. A Korea Financial Investment Association survey showed 79 of 100 bond market professionals had predicted a rate hold, while 13 of 20 economists and analysts polled by the Seoul Economic Daily had expected an increase."}],[{"start":112.68,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1787800729_2033.mp3"}

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