- The Bank of Korea raised its policy rate by 25 basis points to 3%, the highest level since January 2025 and in line with expectations.
- South Korea's core inflation rose to 2.6% in July, while headline inflation reached 2.8% after rising each month from February through June.
- The central bank said growth exceeded expectations in Q2, led by exports, and expects both exports and domestic demand to remain strong with support from the semiconductor sector.
Quotes
“inflation is likely to remain above the target level for a "considerable time.”
“The future path of inflation is judged to be subject to high uncertainties related to movements in global oil prices and the exchange rate, to the pace of the recovery in domestic demand, and to the extent of the broadening of the increase in wages”