Seoul: The Bank of Korea (BOK) raised the benchmark rate by 0.25 percentage points for the second straight meeting Thursday to curb mounting inflationary pressure. The BOK's Monetary Policy Board increased the key rate to 3 percent at its regular rate-setting meeting in Seoul, marking the highest level since January 2025.

According to Yonhap News Agency, the central bank delivered its first rate hike in 3 1/2 years in July. This move marked the first back-to-back rate hikes since January 2023, when the central bank raised the rate at seven consecutive meetings starting in April 2022.

The central bank has expressed a strong will to maintain a hawkish stance for the time being due to rising inflationary pressures. These pressures stem from higher oil prices and renewed uncertainty in the Middle East, as well as the better-than-expected pace of economic recovery.