Bank of Korea Raises Key Interest Rate to 2.5%

The video discusses a 25 basis point interest rate hike by the Bank of Korea (BOK) to 2.5%, amid high inflation and economic challenges. Future projections suggest further hikes, potentially reaching a terminal rate of 3.25% by early next year, due to inflationary pressures and currency concerns. Revised forecasts indicate higher CPI and lower GDP growth for 2023. External factors, such as slowing export demand from China, the US, and Europe, are expected to impact Korea's economy, though domestic consumption may remain stable for now.

What revisions were made to the CPI forecast during the meeting?

What impact is expected on domestic consumption due to external economic conditions?