The Bank of Korea (BOK) on Thursday raised its base rate by 25 basis points to 3%, delivering a second consecutive increase after its July 16 hike. Six Monetary Policy Board members backed the move and one favored keeping rates at 2.75%, as the BOK said stronger-than-expected growth, persistent inflation and financial-stability risks required further preemptive tightening.

The central bank also raised its 2026 growth forecast from 2.6% to 3.3% and its 2027 forecast from 2.1% to 2.9%, citing strong semiconductor exports and investment alongside improving consumption. Headline inflation is forecast at 2.7% this year and 2.3% next year,