Washington (United States) (AFP) – Some US Federal Reserve officials saw reasons to hike rates at the central bank's June policy meeting given elevated inflation on fallout from the Middle East war, minutes of the gathering showed Wednesday

The Bank of Korea (BOK) restated its intention to lift the benchmark rate in a parliamentary business report released July 9, citing inflation above the 2% target, solid economic growth and financial stability hazards as core drivers. Its July 16 Monetary Policy Board meeting is widely tipped to deliver the first rate hike since August 2021; the benchmark has stood at 2.5% since last May. South Korea’s June CPI hit 3.2% year-on-year, with the living cost index at 3.4%, fueled by high oil prices and exchange-rate pressure stemming from Middle East geopolitical tensions. The BOK forecasts persistent inflation as recovering domestic demand offsets cooling global crude costs. The central bank pointed out synchronized hawkish shifts worldwide: the Federal Reserve hinted at late-2026 hikes, while the Eurozone, Japan and Australia have already raised rates to counter energy-fueled inflation. It also assessed domestic markets. Korea’s stock market faces sustained volatility amid AI growth worries and shifting global monetary policies, yet semiconductor earnings upgrades and capital market reforms limit steep slumps. Though AI data center investment fuels an unusually strong semiconductor upcycle, latent risks linger, including tech profit doubts, weaker big-tech capital spending and energy supply constraints.