Despite slowing growth, South Korea's central bank raised its benchmark rate by a quarter-point as inflation is expected to remain above target for a considerable time.
The Monetary Policy Board of the Bank of Korea decided to raise the Base Rate by 25 basis points to 3.50 percent from 3.25 percent.
The central bank has hiked its policy rate by altogether 300 basis points in the current tightening cycle that began in August 2021, taking the rate to the highest since 2008.
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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.