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  • 6 weeks ago
South Korea's central bank is set to raise interest rates for the first time in over three years, with another hike likely before the end of 2026.
Transcript
00:00South Korea's central bank is expected to raise interest rates for the first time in more than three years,
00:06with another hike likely before the end of 2026.
00:09The move comes as inflation remains well above the Bank of Korea's 2% target.
00:16Consumer prices rose 3.2% in June, the highest level in two and a half years.
00:22It is predicted to average around 3% through the second half of the year.
00:27Rising property prices, elevated household debt and stronger economic growth
00:31have given policymakers room to tighten monetary policy.
00:35South Korea's economy expanded at its fastest pace in nearly six years during the first quarter.
00:41But price pressures have also been fueled by higher global oil prices amid renewed conflict in the Middle East,
00:48while a weaker one has pushed up the cost of imported raw materials.
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