South Korea central bank hikes rates amid chip boom
South Korea's central bank hiked interest rates on July 16 for the first time in more than three years and indicated more to come amid robust economic growth fuelled by the AI chip boom, persistent inflation and risks to financial stability.
The Bank of Korea has increasingly leaned toward tighter monetary policy owing to stubbornly high inflation, a weaker won and an economy buoyed by strong semiconductor exports.
The combination of robust growth, rising home prices, and elevated household debt has strengthened the case.
Yesterday an official at the bank told AFP the Monetary Policy Board had "raised the benchmark rate from 2.5 percent to 2.75 percent."
