The Bank of Korea (South Korea's central bank) raised its benchmark interest rate by 0.25 percentage points to 2.75 percent on Thursday — its first rate hike since January 2023 — as policymakers moved to rein in inflation running above target. Consumer prices rose 3.2 percent year-on-year in June, driven largely by a surge in fuel costs tied to ongoing Middle East tensions, while the Korean won has remained under pressure against the dollar. The unanimous decision by all seven board members signals further tightening ahead, with the central bank warning that inflation is expected to stay above its target level for a considerable period.