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Bank of Korea takes rates to 3%, highest level since January 2025

8/27/2026

Against the backdrop of stubborn core inflation, the Bank of Korea has delivered a second consecutive rate increase, lifting its benchmark by 25 basis points to 3 percent. That level is the highest since January 2025.

The move arrived in line with market expectations, though the sequence of two consecutive hikes carries a different signal than a single adjustment would. Back-to-back moves are a statement.

A single hike at any given meeting can be read as calibration, a committee adjusting for data it expects to moderate.

Two in a row suggest something more settled: policymakers have concluded the inflation trend is durable enough to warrant sustained pressure rather than a pause to observe.

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