Key facts
- South Korea's benchmark interest rate is likely to be raised soon, according to President Lee Jae Myung.
- The president cited the need to narrow the yield gap with the U.S. and global monetary tightening.
- South Korea's current policy rate is 3.00%, compared to the U.S. Federal Reserve's 3.75%-4.00% range.
- Lee's comments are seen as a political intervention in the Bank of Korea's independent rate-setting authority.
South Korea faces a near certainty of raising its benchmark interest rate in the near future, President Lee Jae Myung said, citing the need to narrow the widening yield gap with the United States and align with global monetary tightening trends. The country's current policy rate stands at 3.00%, while the U.S. Federal Reserve's target range is 3.75%-4.00%.