
South Korea's central bank raised its base rate for the first time in three-and-a-half years, joining global peers in tightening monetary policy to counter inflationary pressures fueled by the U.S.-Iran conflict.
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South Korea's central bank raised its base rate for the first time in three-and-a-half years, joining global peers in tightening monetary policy to counter inflationary pressures fueled by the U.S.-Iran conflict.

Elevated inflation in the country is likely to strengthen the case for the central bank to tighten monetary policy at its rate-setting meeting later this month.

The benchmark consumer-price index rose 3.1% from a year earlier in May, reflecting the effects of higher oil prices amid Middle East tensions and the won's weakness against the U.S. dollar.

Investors are focusing on AI developments in North Asia. China is coming out of more than three years of deflation measured by the producer price index.
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