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South Korea's Central Bank Considers Raising Rates From 2.5%, Citing Inflation and Financial Risks

2026-06-24 02:29:38

According to South Korea's central bank Financial Stability Report released Wednesday, the Bank of Korea stated it needs to raise its policy interest rate at an appropriate time, considering inflation pressures, economic conditions, and financial stability risks. The central bank has maintained its benchmark rate at 2.5% since the second half of 2025. The report warned that rising house prices in Seoul and surrounding areas, combined with increasing investor reliance on leverage to purchase assets, could further exacerbate financial imbalances, despite overall stability in the country's financial system.

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