Bank of Korea raises interest rates by 25 bps, as expected By Reuters

SEOUL (Reuters) – South Korea’s central bank raised its policy interest rate by 25 basis points on Friday, making a widely expected move that many economists also predicted would mark the end of a tightening cycle that began in 2021.

The Bank of Korea said its seven-member monetary policy board had decided to raise its policy interest rate to 3.50%, the highest since December 2008. It did not elaborate on the decision.

The rise matched a prediction by 36 out of 40 economists in a Reuters poll, in which the remaining four had expected the central bank to hold the rate steady at 3.25%.

Friday’s decision marked the 10th interest rate rise since the current tightening cycle began in August 2021 and brought the total amount of increase to 300 basis points.