％South Korea Government Bond 10Y
KR-10Y
▲ PositiveMonetaryrelevance
BOK raises policy rate by 25bp to 3%, directly lifting the 10Y yield.
Impact on stocks 1
Others
Bank of Korea raises interest rate by 0.25% to 3% to curb inflation
Macro
The Bank of Korea (BOK) announced a 0.25 percentage point increase in its policy rate to 3% at its meeting today (Aug. 27), the highest level since January 2025 and the second consecutive hike, following the first increase in three and a half years in July. Six of the seven board members voted for the hike, while one proposed holding at 2.75%. The BOK stated that it is necessary to act preemptively to prevent inflationary pressures from broadening, while also monitoring financial stability risks. Additionally, the BOK raised its economic growth forecast for 2026 to 3.3% from 2.6%, and projected 2.9% for 2027. The inflation target remains at 2.7% for 2026 and 2.3% for 2027.
BOK raises policy rate by 25bp to 3%, directly lifting the 10Y yield.