South Korea

Mildly restrictive

Policy rate

3.00%

Last move Aug 2026

Inflation

2.12%

As of null

Real policy rate

0.88%

Policy rate less inflation

Debt to GDP

54.40%

2026 est.

Inflation target2%

Policy rate vs target+1 pp

Last move+25 bps hike

Months at current rate0

Real GDP growth1.90%

Next scheduled decisionNot published

Policy rate path, latest five years. Cycle peak 5.25% (Oct 2000).

The verdict

South Korea sets its policy rate at 3.00%, against inflation of 2.12% — a real rate of 0.88% after inflation. The most recent decision was a 25bp hike in Aug 2026. The bank targets 2% inflation, and prices are running above that at 2.12%; the policy rate stands 1.00 percentage points above target. On the fiscal side, the economy carries government debt of 54.4% of GDP (2026 est.) and real GDP growth of 1.9%.

Sources: policy rate and cycle history — BIS central bank policy rates (WS_CBPOL); inflation — national statistical agencies; debt and growth — IMF World Economic Outlook. Methodology: https://www.globalfinancialinfo.info/methodology/policy-rates · Dataset: https://www.globalfinancialinfo.info/global-economy · Free to print and share for non-commercial classroom use (CC BY-NC-ND 4.0).

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