The Bank of Korea announced on Thursday that it would raise its benchmark interest rate by 25 basis points to 3%, marking the second consecutive rate hike by the central bank to address stronger-than-expected economic growth momentum and persistent inflation pressures above target levels. This interest rate decision was not unanimous, with one of the seven monetary policy board members voting to keep rates unchanged. The central bank also maintained its CPI growth forecast for 2026 at 2.7% and noted that inflation would remain above the target level for a considerable period. Furthermore, the Bank of Korea specifically highlighted several financial stability risks, including continuous increases in housing prices in the Seoul metropolitan area, ongoing expansion of household debt, and an increase in leveraged stock investments.