US Rate Hike Sends Warning Signal to South Korean Interest Rates

The U.S. Federal Reserve raised interest rates this week, and experts predict that South Korea's rate decision next month will likely follow suit.

This move by the Fed is expected to increase the burden on households in South Korea due to the aftermath of the interest rate hike.

The Bank of Korea's key interest rate is currently at 2.75% per annum, but it may be raised one after another ahead of next month's decision.

According to KB Securities, international oil prices are a major factor affecting consecutive interest rate hikes and final base rates until October, with high oil prices continuing to soar since March.