The Bank of Korea raised the benchmark interest rate by 0.25 percentage points to 3.00% in order to stabilize prices, housing prices, and exchange rates. This is a faster-than-expected increase, and Governor Hyun Song Shin explained that it is like "using a hoe instead of a rake," aiming to stabilize inflation early through preemptive policies and reduce the intensity and duration of tightening. The interest rate hike is expected to help curb rising house prices and stabilize the won/dollar exchange rate. There is a possibility that an additional interest rate hike will be implemented once within the next six months, which could occur in November or January or February of next year.
