emirates7 - The Bank of Korea (BOK) raised the benchmark rate by 0.25 percentage point on Thursday to curb mounting inflationary pressure.

Yonhap News Agency reported that the BOK's Monetary Policy Board hiked the key rate to 3 percent at its regular rate-setting meeting in Seoul, marking the highest level since January 2025.

The central bank delivered its first rate hike in three and a half years in July.

The central bank attributed the move to rising inflationary pressures stemming from higher oil prices, as well as the better-than-expected pace of economic recovery.