The Bank of Korea raised its policy interest rate by 25 basis points to 3% on Thursday, marking the second consecutive rate increase, while simultaneously raising its growth forecasts for the economy.
South Korea, Asia's third-largest economy, is being powered by an artificial intelligence boom. Nvidia's second-quarter results confirmed that this AI-driven expansion is far from over, supporting the central bank's decision to tighten monetary policy while upgrading its economic outlook.
The move signals the Bank of Korea's confidence in the country's growth trajectory, tied closely to demand linked to the ongoing AI expansion.
For more details, see the original report at MarketWatch.
