South Korea's central bank raised its benchmark rate by a moderate quarter point on Thursday as the slowdown in economic growth is set to be more severe.
The Monetary Policy Board of the Bank of Korea unanimously decided to raise the Base Rate by 25 basis points to 3.25 percent from 3.00 percent.
Regarding the size of the rate hike, the board assessed that a quarter point increase is appropriate as economic slowdown is set to be faster in the future amid subsiding risks in the foreign exchange market and constrained funding conditions in short-term financial markets. "The Board sees continued rate hikes as warranted for some time, as inflation is expected to remain high, substantially above the target level, although the domestic economic growth rate has slowed," the bank said.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.