South Korea's Central Bank Hikes Benchmark Rate by 0.25% to 2.75%, Securities Firms Raise CMA Yields

According to News1, South Korea's central bank raised its benchmark interest rate by 0.25 percentage points to 2.75% on July 16, marking the first increase in three years and six months since January 2023. Following the move, major commercial banks hiked deposit and savings rates, prompting securities firms to raise yields on cash management accounts (CMAs) and short-term products to retain customer funds.

Multiple securities companies, including Mirae Asset Securities, Korea Investment & Securities, and KB Securities, adjusted CMA and commercial paper yields upward by approximately 0.25 percentage points starting July 20-22. Mirae Asset raised its won-denominated commercial paper yields to 2.40% for on-demand products and 3.65% for one-year maturities. Industry participants noted the rate increases aim to prevent customer fund outflows to banks amid the broader monetary tightening cycle.