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27.08.202601:00:00UTC+00Bank of Korea Lifts Policy Rate to 3.00% in August, Continuing Tightening Cycle

South Korea’s central bank raised its key interest rate to 3.00% in August 2026, up from 2.75% in July 2026, extending its tightening path as updated data confirmed the move on 27 August 2026. The 25 basis point increase marks a continuation of the Bank of Korea’s efforts to normalize borrowing costs from previously lower levels.

The August decision signals that policymakers remain focused on containing price and financial stability risks, even as higher rates increase pressure on households and businesses. With the policy rate now at 3.00%, markets and investors will be closely watching upcoming guidance from the central bank for clues on whether further hikes are likely in the coming months.

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