Bank of Korea Raises Benchmark Rate to 2.75% on July 16, Cites Financial Stability Risks

According to the Bank of Korea, the central bank raised its benchmark interest rate by 25 basis points to 2.75% on July 16. Bank Governor Shin Hyun-sung said the rate hike reflects concerns over financial stability risks and signaled the central bank will continue tightening, though the pace of future increases will depend on incoming economic data.

The dollar-won rate fell to 1,478.90 won on the day, down 5.80 won from the previous close, as the U.S. dollar weakened following lower-than-expected U.S. CPI and PPI readings.