Framing Analysis
The Bank of Korea raised its benchmark interest rate by 0.25 percentage points to 2.75 percent in July, the first such increase in three and a half years. Senior Deputy Governor Ryoo Sang-dai (also spelled Yoo Sang-dai) stated that the possibility of an additional hike remains high absent extraordinary shocks, citing demand-driven inflation pressures from economic recovery. His three-year term ends August 20.