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South Korea's Central Bank Raises Benchmark Rate by 0.25% on July 16, First Hike in 3.5 Years

2026-07-20 02:09:16

According to Yonhapinfomax, South Korea's central bank raised its benchmark interest rate by 0.25 percentage points on July 16, marking the first increase in 3 years and 6 months. Central Bank Governor Shin Hyun-song said 24-hour forex trading has not yet reduced NDF market activity, adding that the narrowing U.S.-Korea interest rate differential may influence NDF trading volumes and that preparatory papers are under review for future announcement. The central bank also noted that 24-hour forex trading alone cannot resolve all issues and complementary systems must be implemented alongside the won internationalization initiative.

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