Lee says South Korea can scarcely avoid another interest rate rise
President Lee Jae Myung cited the gap with US rates, but any change to South Korea’s benchmark rate is a decision for the Bank of Korea.
South Korean President Lee Jae Myung said at an October 13 cabinet meeting that the country could scarcely avoid raising interest rates, citing the gap with US rates and global monetary tightening. His remarks did not change South Korea’s benchmark rate, which the Bank of Korea’s Monetary Policy Board sets.
Reuters reported that South Korea’s benchmark rate stood at 3.00%, against a US Federal Reserve target range of 3.75% to 4.00%. Lee also raised concerns about household debt and the risk of defaults.
Who decides South Korea’s next rate change
The Bank of Korea’s Monetary Policy Board raised its base rate from 2.75% to 3.00% on August 27. It said the timing and pace of further increases would depend on incoming inflation, economic and financial stability data. Lee’s comments were not a new Board decision, and no date for another increase was established in the cited reporting.
Sources and context
- South Korea's Lee says country cannot avoid raising interest ratesReuters (republished by Channel NewsAsia)
- Monetary Policy Decision & Opening Remarks to the Press Conference (August 27, 2026)Bank of Korea
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