The South Korean Central Bank kept interest rates unchanged at 3.5 percent, in line with expectations.
South Korea’s central bank kept the benchmark interest rate unchanged at 3.5 percent. The Central Bank of Korea did not change interest rates for the fourth time in a row after the last rate hike in January.
The bank wrote that although the country’s inflation rate continues to slow, it is expected to rise above South Korea’s central bank’s 2 percent target “for a substantial period of time”.
The South Korean Central Bank also forecasts inflation to rise to around 3 percent after August.
South Korea’s inflation rate came in at 2.7 percent in June, the lowest level since September 2021.