Bank of Korea hikes base rate to 2.75% in first policy tightening since 2023

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The Bank of Korea (BoK) raised its benchmark base rate by 25 basis points to 2.75% during its July 2026 meeting. The move, which matched widespread market forecasts, marks the central bank’s first interest rate increase since January 2023.

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The Bank of Korea decided to raise the base rate to 2.75% by 25 basis points at the July 2026 meeting, marking the first rate hike since January 2023. This decision, in line with market expectations, has strengthened expectations for future rate hikes.

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The decision to raise the base rate to 2.75% by 25 basis points at the July 2026 meeting is expected to have a positive impact on the financial sector, as it reflects the market's expectations for future rate hikes.

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