SEOUL, July 16 (Xinhua) -- South Korea's central bank raised its policy rate by 25 basis points on Thursday.
Bank of Korea (BOK) Governor Shin Hyun-song and other monetary policymakers decided to increase the benchmark seven-day repurchase rate to 2.75 percent from 2.50 percent.
The rate increase marked the BOK's first shift back toward monetary tightening since January 2023.
It was in line with market expectations. According to the Korea Financial Investment Association's poll of 100 fixed-income experts, 66 percent predicted the rate hike this month.
The central bank cut its key rate by a quarter percentage point in October and November of 2024 and in February and May of 2025, before making a rate freeze decision for an eighth consecutive time through May this year. ■
