BOK May Hike Interest Rates Again Amid US Economic Pressure

The Bank of Korea (BOK) may raise its benchmark interest rate by the end of this year, following a recent decision by the U.S. Federal Reserve to leave open the possibility of further tightening.

In a regular meeting of the FOMC and the Fed, three members demanded a rate hike, which has increased the momentum for the BOK to raise its interest rates as well.

The central bank raised its key interest rate by 0.25 percentage point to 2.75 percent from 2.50 percent last year at the Monetary Policy Committee this month.

Market attention is shifting to whether the Bank of Korea will raise its benchmark interest rate again at the Monetary Policy Committee in August, considering the difference in interest rates between Korea and the U.S., the weak won, and the burden of rising import prices.