NewsHK

Bank of Korea raises rates to 3 percent for a second consecutive meeting as AI-driven demand underwrites South Korea's growth revision

8/27/2026

Asia's rate cycle moved tighter on Thursday.

The Bank of Korea raised its benchmark rate by 25 basis points to 3 percent, marking a second consecutive hike, and policymakers simultaneously lifted their growth forecasts for South Korea.

That pairing is unusual: central banks that raise rates typically do so into a picture where growth momentum, or the threat of it running too hot, is the concern.

What makes this episode different is the demand signal underpinning both decisions.