Central bank delivers back-to-back hike as chip-led growth and persistent inflation strengthen case for tightening Bank of Korea Gov. Shin Hyun-song bangs the gavel to open a Monetary Policy Board meeting at the central bank in Seoul, Thursday. (Joint Press Corps.) The Bank of Korea on Thursday raised its benchmark interest rate for a second consecutive meeting, pressing ahead with monetary tightening amid persistent inflationary pressures.The Monetary Policy Board lifted the rate by 0.25 percentage point to 3 percent, following an increase of the same size in July.Thursday’s decision came amid strong inflationary pressure fueled by rising incomes from the semiconductor boom. Real gross domestic product grew 0.6 percent in the second quarter from the previous quarter, three times the BOK’s 0.2 percent forecast, following a 1.8 percent expansion in the first quarter.Core inflation, which excludes volatile items, remained elevated, signaling persistent underlying price pressure. It rose 2.6 percent in July, exceeding the BOK’s 2 percent target.With second-quarter growth stronger than expected, the BOK raised its 2026 growth forecast to 3.3 percent from the 2.6 percent projection issued in May. The May figure had already been revised upward from 2 percent.