The Bank of Korea held a Monetary Policy Committee meeting today (July 16) and raised the base interest rate to 2.75% per annum.

This marks the first rate hike in three years and six months since January 2023.

The decision is interpreted as a response to rising inflation driven by high oil prices, amid the prolonged uncertainty surrounding the end of the Middle East war.

Market analysts are also suggesting the possibility of additional rate hikes as early as next month or at the Monetary Policy Committee meeting scheduled for October.