New BOK chief signals looming rate hikes as inflation pressure builds

South Korea's central bank on Thursday kept its benchmark interest rate unchanged, signaling a pivot toward tighter monetary policy, while raising its 2026 growth forecast to 2.6 percent. The Monetary Policy Board held the key rate steady at 2.5 percent, extending the rate freeze in place since May 2025. However, hawkish signals became more pronounced, with two of the seven board members calling for a 25-basis-point rate hike. "Whether looking at inflation, growth, the exchange rate or the prope

By The Korea Herald