BOK raises base interest rate for first time in 33 months

The monetary policy board of the Bank of Korea decides on the country's benchmark interest rate Thursday. [BANK OF KOREA]

The central bank raised Korea's benchmark interest rate by 0.25 percentage points to 0.75 percent Thursday.

It was the first time in 15 months that the monetary policy board of the Bank of Korea (BOK) changed the key rate and the first interest rate rise in two years and nine months.

In 2020, the BOK lowered the base rate twice -- to 0.75 percent in March and 0.5 percent in May -- as the coronavirus pandemic started pulling down the economy.

BOK Gov. Lee Ju-yeol had hinted at a potential rate hike within this year in briefings as household debt continues to grow.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]