Bank of Korea Raises Rate to 3.00% to Curb Inflation

The Bank of Korea raised its benchmark interest rate by 25 basis points to 3.00 percent on Thursday, August 27, 2026, delivering a second consecutive increase as the central bank seeks to contain persistent inflation and financial stability risks amid a robust economic expansion. The decision, made by the seven-member monetary policy board, was widely anticipated by economists and markets. The rate hike, which brings the seven-day repurchase rate to its highest level since February 2025, reflects the BOK's commitment to bringing inflation back to its 2 percent target. South Korea's consumer price inflation has remained elevated, driven by factors including high energy and food costs.