South Korea's Central Bank Raises Benchmark Rate to 2.75% on July 16; Q2 CPI Hits 3.0%

The Bank of Korea raised its benchmark interest rate to 2.75% on July 16, according to its monetary policy committee decision. Consumer price inflation accelerated to 3.0% in the second quarter, driven by surging crude oil prices and a weaker Korean won, marking a sharp increase from the previous quarter. Core inflation, excluding volatile items, rose 2.4%, primarily due to higher airline and travel service costs, as well as durable goods prices.
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