Bank of Korea Raises Rates to 3.00% in Back-to-Back Hike as Core Inflation Hits Three-Year High

South Korea's central bank raised its policy rate by 25 basis points to 3.00% on August 27, marking its second consecutive meeting with a rate increase and its first back-to-back hikes since the COVID era. The move was widely expected and comes as core inflation in Asia's fourth-largest economy climbed to its highest level in over three years, signaling mounting price pressures that the BOK is moving to contain. Alongside the rate decision, the central bank raised its 2026 GDP growth forecast sharply, to 3.3% from a prior 2.6%, reflecting a more optimistic economic outlook even as it tightens monetary policy.