Bank of Korea Raises Rates for First Time Since 2023

The Bank of Korea raised its benchmark interest rate by 25 basis points to 2.75%, its first hike in more than three years, as the AI-driven chip boom fuels inflation and the won weakens.

The move aligns with global central bank tightening amid Middle East tensions.

The central bank cited stronger-than-expected economic growth and the need to curb household debt.

This marks the beginning of a tightening cycle after a prolonged period of accommodative policy.