Banks › Bank of Korea › History › 27 Aug 2026

Bank of Korea: decision of 27 August 2026

The Bank of Korea raised its Base Rate by 25 basis points to 3.00%, its second increase in a row.

Decision

raise

Rate
2.75%↑3.00%
Change
+25 bp
Vote
6–1
Announced

Sources

Statement
bok.or.kr/eng/bbs/E0000627/view.do?nttId=11064194&…
Minutes
bok.or.kr/eng/bbs/E0001620/view.do?nttId=11064684&…
Press conference opening remarks
bok.or.kr/fileSrc/eng/358f68ee07064a36b…
Recorded
27 Aug 2026
Data
JSON

What the bank said

The Board said the economy was growing faster than expected and raised its growth forecasts to 3.3% for 2026 and 2.9% for 2027, from 2.6% and 2.1% in May.

It said inflation, 2.8% in July with core at 2.6%, was expected to stay above target for a considerable time and that preemptive action was needed to keep inflationary pressures from becoming widespread.

It pointed to faster house price increases in Seoul and its surrounding areas and household debt growth as financial-stability risks.

Guidance. The Board said it will decide the timing and pace of further Base Rate increases while assessing inflation, the economy and financial stability.

Dissent

One member, Hwang Kunil, voted against, proposing to keep the Base Rate at 2.75%.

Summarised by Macro Index from bok.or.kr/eng/bbs/E0000627/view.do?nttId=11064194&… on 10 Oct 2026. The bank's own statement is the authority; this page paraphrases it.

Before and after

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